Does deposit insurance increase banking system stability ? An empirical investigation

Asli Demirguc-Kunt and Enrica Detragiache ()

No 2247, Policy Research Working Paper Series from The World Bank

Abstract: Based on evidence of 61 countries in 1980-97, the authors find that explicit deposit insurance tends to be detrimental to bank stability, the more so where bank interest rates are deregulated and the institutional environment is weak. The adverse impact of deposit insurance on bank stability tends to be stronger the more extensive is the coverage offered to depositors, and where the scheme is funded and run by the government rather than the private sector.

Keywords: Financial Intermediation; Banks&Banking Reform; Insurance&Risk Mitigation; Financial Crisis Management&Restructuring; Insurance Law; Insurance&Risk Mitigation; Financial Crisis Management&Restructuring; Financial Intermediation; Insurance Law; Banks&Banking Reform (search for similar items in EconPapers)
Date: 1999-11-30
View list of references View citations in EconPapers

Downloads: (external link)
http://www-wds.worldbank.org/servlet/WDSContentSer ... d/PDF/multi_page.pdf (application/pdf)

Related works:
Working Paper: Does Deposit Insurance Increase Banking System Stability? An Empirical Investigation (2000)
Journal Article: Does deposit insurance increase banking system stability? An empirical investigation (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:wbk:wbrwps:2247

Access Statistics for this paper

More papers in Policy Research Working Paper Series from The World Bank
Address: 1818 H Street, N.W., Washington, DC 20433
Contact information at EDIRC.
Series data maintained by Roula I. Yazigi ().