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Deposit insurance and banking reform in Russia

Author

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  • Camara, Modibo K.
  • Montes-Negret, Fernando

Abstract

The objective of this paper is not to review the pros and cons of deposit insurance systems, but to focus, rather narrowly, on the recent adoption of a deposit insurance system (DIS) in Russia, the rationale offered, and the potential impact it might have on the stability and development of the Russian banking system. An attempt is made to draw some lessons from the implementation experience in Russia. The paper starts with a brief description of the Russian DIS, followed by an overview of the banking system's structure and some observations on the sequencing followed for adopting the DIS and the political economy of its adoption. It concludes with a discussion of areas requiring attention.

Suggested Citation

  • Camara, Modibo K. & Montes-Negret, Fernando, 2006. "Deposit insurance and banking reform in Russia," Policy Research Working Paper Series 4056, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4056
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    References listed on IDEAS

    as
    1. Robert Cull & Lemma Senbet & Marco Sorge, 2004. "Deposit Insurance and Bank Intermediation in the Long Run," BIS Working Papers 156, Bank for International Settlements.
    2. Asli Demirguc-Kunt & Edward J. Kane, 2002. "Deposit Insurance Around the Globe: Where Does It Work?," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 175-195, Spring.
    3. Laeven, Luc, 2002. "Pricing of deposit insurance," Policy Research Working Paper Series 2871, The World Bank.
    4. William Tompson, 2004. "Banking Reform in Russia: Problems and Prospects," OECD Economics Department Working Papers 410, OECD Publishing.
    5. International Monetary Fund, 2004. "Russian Federation: Selected Issues," IMF Staff Country Reports 2004/316, International Monetary Fund.
    6. Luc Laeven, 2004. "The Political Economy of Deposit Insurance," Journal of Financial Services Research, Springer;Western Finance Association, vol. 26(3), pages 201-224, December.
    7. Tirole, Jean, 1986. "Procurement and Renegotiation," Journal of Political Economy, University of Chicago Press, vol. 94(2), pages 235-259, April.
    8. Ms. G. G. Garcia, 1999. "Deposit Insurance: A Survey of Actual and Best Practices," IMF Working Papers 1999/054, International Monetary Fund.
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    Citations

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    Cited by:

    1. A.O. Karas & William Pyle & Koen Schoors, 2019. "Deposit Insurance, Market Discipline and Bank Risk," Working Papers 19-02, Utrecht School of Economics.
    2. Alexei Karas & William Pyle & Koen Schoors, 2009. "The Effect of Deposit Insurance on Market Discipline:Evidence from a Natural Experiment on Deposit Flows," Middlebury College Working Paper Series 0905, Middlebury College, Department of Economics.
    3. Berger, Allen N. & Hasan, Iftekhar & Korhonen, Iikka & Zhou, Mingming, 2010. "Does diversification increase or decrease bank risk and performance? : Evidence on diversification and the risk-return tradeoff in banking," BOFIT Discussion Papers 9/2010, Bank of Finland, Institute for Economies in Transition.
    4. Fungáčová, Zuzana & Weill, Laurent, 2009. "How market power influences bank failures: Evidence from Russia," BOFIT Discussion Papers 12/2009, Bank of Finland Institute for Emerging Economies (BOFIT).
    5. Hartwell, Christopher A. & Korovkin, Vladimir, 2021. "Contracting in a void: The role of the banking sector in developing property rights in Russia," The Quarterly Review of Economics and Finance, Elsevier, vol. 82(C), pages 113-127.
    6. Berger, Allen N. & Hasan, Iftekhar & Korhonen, Iikka & Zhou, Mingming, 2010. "Does diversification increase or decrease bank risk and performance? Evidence on diversification and the risk-return tradeoff in banking," BOFIT Discussion Papers 9/2010, Bank of Finland Institute for Emerging Economies (BOFIT).
    7. Zuzana Fungáčová & Laurent Weill & Mingming Zhou, 2017. "Bank Capital, Liquidity Creation and Deposit Insurance," Journal of Financial Services Research, Springer;Western Finance Association, vol. 51(1), pages 97-123, February.
    8. Fungáčová Z. & Solanko L., 2009. "Risk-taking by Russian banks: do location, ownership and size matter?," Higher School of Economics Economic Journal Экономический журнал Высшей школы экономики, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 13(1), pages 101-129.
    9. Alexei Karas & William Pyle & Koen Schoors, 2009. "The Effect of Deposit Insurance on Market Discipline:Evidence from a Natural Experiment on Deposit Flows," Middlebury College Working Paper Series 0905, Middlebury College, Department of Economics.
    10. Fungáčová Z. & Solanko L., 2009. "Risk-taking by Russian banks: do location, ownership and size matter?," Higher School of Economics Economic Journal Экономический журнал Высшей школы экономики, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 13(1), pages 101-129.
    11. Fungáčová, Zuzana & Weill, Laurent, 2009. "How market power influences bank failures : Evidence from Russia," BOFIT Discussion Papers 12/2009, Bank of Finland, Institute for Economies in Transition.
    12. Alexei Karas & William Pyle & Koen Schoors, 2021. "Deposit Insurance, Moral Hazard and Bank Risk," CESifo Working Paper Series 8867, CESifo.
    13. Alexei Karas & William Pyle & Koen Schoors, 2013. "Deposit Insurance, Banking Crises, and Market Discipline: Evidence from a Natural Experiment on Deposit Flows and Rates," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 45(1), pages 179-200, February.
    14. A.O. Karas & William Pyle & Koen Schoors, 2019. "Deposit Insurance, Market Discipline and Bank Risk," Working Papers 19-02, Utrecht School of Economics.

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