Determinants of deposit-insurance adoption and design

Asli Demirguc-Kunt, Edward J. Kane and Luc Laeven ()

No 3849, Policy Research Working Paper Series from The World Bank

Abstract: The authors seek to identify factors that influence decisions about a country's financial safety net, using a new dataset on 170 countries covering the 1960-2003 period. Specifically, they focus on how outside influences, economic development, crisis pressures, and political institutions affect deposit insurance adoption and design. Controlling for the influence of economic characteristics and events such as macroeconomic shocks, occurrence and severity of crises, and institutional development, they find that pressure to emulate developed-country regulatory frameworks and power-sharing political institutions dispose a country toward adopting design features that inadequately control risk-shifting.

Keywords: Banks&Banking Reform; Economic Theory&Research; Financial Intermediation; Insurance&Risk Mitigation; Financial Crisis Management&Restructuring (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-fmk and nep-ias
Date: 2006-02-01
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Related works:
Working Paper: Determinants of Deposit-Insurance Adoption and Design (2007)
Journal Article: Determinants of deposit-insurance adoption and design (2008)
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Persistent link: http://EconPapers.repec.org/RePEc:wbk:wbrwps:3849

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