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Deposit insurance around the world: A comprehensive analysis and database

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  • Demirgüç-Kunt, Asli
  • Kane, Edward
  • Laeven, Luc

Abstract

This paper provides a comprehensive, global database of deposit insurance arrangements as of 2013. We extend our earlier dataset by including recent adopters of deposit insurance and information on the use of government guarantees on banks’ assets and liabilities, including during the recent global financial crisis. We also create a Safety Net Index capturing the generosity of the deposit insurance scheme and government guarantees on banks’ balance sheets. The data show that deposit insurance has become more widespread and more extensive in coverage since the global financial crisis, which also triggered a temporary increase in the government protection of non-deposit liabilities and bank assets. In most cases, these guarantees have since been formally removed but coverage of deposit insurance remains above pre-crisis levels, raising concerns about implicit coverage and moral hazard going forward.

Suggested Citation

  • Demirgüç-Kunt, Asli & Kane, Edward & Laeven, Luc, 2015. "Deposit insurance around the world: A comprehensive analysis and database," Journal of Financial Stability, Elsevier, vol. 20(C), pages 155-183.
  • Handle: RePEc:eee:finsta:v:20:y:2015:i:c:p:155-183
    DOI: 10.1016/j.jfs.2015.08.005
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    References listed on IDEAS

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    1. Ms. G. G. Garcia, 2000. "Deposit Insurance: Actual and Good Practices," IMF Occasional Papers 2000/001, International Monetary Fund.
    2. International Monetary Fund, 2013. "Nigeria: Publication of Financial Sector Assessment Program Documentation––Technical Note on Stress Testing," IMF Staff Country Reports 2013/141, International Monetary Fund.
    3. Anginer, Deniz & Demirguc-Kunt, Asli & Zhu, Min, 2014. "How does deposit insurance affect bank risk? Evidence from the recent crisis," Journal of Banking & Finance, Elsevier, vol. 48(C), pages 312-321.
    4. Demirguc-Kunt, Asli & Detragiache, Enrica, 2002. "Does deposit insurance increase banking system stability? An empirical investigation," Journal of Monetary Economics, Elsevier, vol. 49(7), pages 1373-1406, October.
    5. Sebastian Schich & Byoung-Hwan Kim, 2011. "Guarantee Arrangements for Financial Promises: How Widely Should the Safety Net be Cast?," OECD Journal: Financial Market Trends, OECD Publishing, vol. 2011(1), pages 201-235.
    6. Demirgüç-Kunt, Asli & Kane, Edward J. & Laeven, Luc, 2008. "Determinants of deposit-insurance adoption and design," Journal of Financial Intermediation, Elsevier, vol. 17(3), pages 407-438, July.
    7. Mr. Alexander Y Kyei, 1995. "Deposit Protection Arrangements: A Survey," IMF Working Papers 1995/134, International Monetary Fund.
    8. Asl? Demirgüç-Kunt & Edward J. Kane & Luc Laeven (ed.), 2008. "Deposit Insurance around the World: Issues of Design and Implementation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262042541, December.
    9. Sebastian Schich, 2010. "Expanded guarantees for banks: Benefits, costs and exit issues," OECD Journal: Financial Market Trends, OECD Publishing, vol. 2009(2), pages 55-89.
    10. Demirguc-Kunt, Asli & Huizinga, Harry, 2004. "Market discipline and deposit insurance," Journal of Monetary Economics, Elsevier, vol. 51(2), pages 375-399, March.
    11. Demirguc-Kunt, Asli & Karacaovali, Baybars & Laeven, Luc, 2005. "Deposit insurance around the world : a comprehensive database," Policy Research Working Paper Series 3628, The World Bank.
    12. Sebastian Schich, 2009. "Financial crisis: Deposit insurance and related financial safety net aspects," OECD Journal: Financial Market Trends, OECD Publishing, vol. 2008(2), pages 1-39.
    13. Mr. Fabian Valencia & Mr. Luc Laeven, 2012. "Systemic Banking Crises Database: An Update," IMF Working Papers 2012/163, International Monetary Fund.
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    More about this item

    Keywords

    Deposit insurance; Financial institutions; Financial crises;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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