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The incentive-compatible design of deposit insurance and bank failure resolution : concepts and country studies

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  • Beck, Thorsten

Abstract

Deposit insurance schemes and bank failure resolution systems are asked to fulfill conflicting public policy objectives: on the one hand, they are supposed to protect small depositors and prevent contagion risks from bank runs; on the other hand, they are supposed to minimize aggressive risk taking by banks. Beck discusses the incentive-compatible design and interaction of both components of the financial safety net and describes and compares three countries with different safety net arrangements-Brazil, Germany, and Russia.

Suggested Citation

  • Beck, Thorsten, 2003. "The incentive-compatible design of deposit insurance and bank failure resolution : concepts and country studies," Policy Research Working Paper Series 3043, The World Bank.
    • Handle: RePEc:wbk:wbrwps:3043
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Beck, Thorsten & Laeven, Luc, 2006. "Resolution of failed banks by deposit insurers : cross-country evidence," Policy Research Working Paper Series 3920, The World Bank.
    2. Magdalena Kozińska, 2022. "The non‐payout functions of deposit insurance schemes," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 1749-1768, April.
    3. Dorothee Hillrichs, 2014. "Deposit Insurance: Reimbursement of Depositors," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(03), pages 61-63, October.
    4. repec:zbw:bofrdp:2004_004 is not listed on IDEAS
    5. Llewellyn, David T. & Mayes, David G., 2003. "The role of market discipline in handling problem banks," Bank of Finland Research Discussion Papers 21/2003, Bank of Finland.
    6. Bolzico, Javier & Mascaro, Yira & Granata, Paola, 2007. "Practical guidelines for effective bank resolution," Policy Research Working Paper Series 4389, The World Bank.
    7. David G. Mayes, 2008. "Avoiding the Next Crisis," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 9(4), pages 44-50, December.
    8. Mayes, David G., 2004. "An approach to bank insolvency in transition and emerging economies," Bank of Finland Research Discussion Papers 4/2004, Bank of Finland.
    9. International Association of Deposit Insurers, 2011. "Cross Border Deposit Insurance Issues Raised by the Global Financial Crisis," IADI Research Papers 11-03, International Association of Deposit Insurers.
    10. David G. Mayes, 2004. "An approach to bank insolvency in transition and emerging economies," Finance 0404015, University Library of Munich, Germany.
    11. Sorana Vătavu & Marilen Pirtea & Sorin Vătavu, 2011. "A Review of Financial Regulations to Avoid the Nationalisation of Losses in the Banking System," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 11(1), pages 277-288.
    12. Mayes, David G., 2005. "Who pays for bank insolvency in transition and emerging economies?," Journal of Banking & Finance, Elsevier, vol. 29(1), pages 161-181, January.
    13. Delis, Manthos & Iosifidi, Maria & Papadopoulos, Panagiotis, 2020. "Blessing or curse? Government funding of deposit insurance and corporate lending," MPRA Paper 99153, University Library of Munich, Germany.
    14. Klüh, Ulrich, 2005. "Safety Net Design and Systemic Risk: New Empirical Evidence," Discussion Papers in Economics 662, University of Munich, Department of Economics.
    15. Delis, Manthos D. & Iosifidi, Maria & Papadopoulos, Panagiotis, 2022. "Blessing or curse? Government funding of deposit insurance and corporate lending," Journal of Financial Stability, Elsevier, vol. 61(C).
    16. Ibrahim Alley, 2023. "BOFIA 2020 and financial system stability in Nigeria: Implications for stakeholders in the African largest economy," Journal of Banking Regulation, Palgrave Macmillan, vol. 24(2), pages 184-205, June.
    17. repec:ces:ifodic:v:12:y:2014:i:3:p:19126479 is not listed on IDEAS
    18. Beck, Thorsten, 2008. "Bank competition and financial stability : friends or foes ?," Policy Research Working Paper Series 4656, The World Bank.
    19. David G. Mayes, 2008. "Avoiding the Next Crisis," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 9(04), pages 44-50, December.
    20. Kusaya, Charles & O’Keefe, John P. & Ufier, Alexander B., 2023. "Bridging the gap from the current deposit insurance fund to a fund target," The Quarterly Review of Economics and Finance, Elsevier, vol. 88(C), pages 148-157.
    21. Dorothee Hillrichs, 2014. "Deposit Insurance: Reimbursement of Depositors," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(3), pages 61-63, October.

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