Deposit insurance and international bank deposits

Harry P. Huizinga and Gaëtan Nicodème ()

International Finance from EconWPA

Abstract: This paper examines how international depositors respond to national deposit insurance policies. Countries with explicit deposit insurance are found to be relatively attractive to international non-bank depositors. Deposit schemes characterized by coinsurance, a private administration, and a low deposit insurance premium appear to be particularly favored by these depositors. The sensitivity of non-bank deposits to deposit insurance policies opens up the possibility of international regulatory competition in this area. The EU directive on deposit insurance imposes minimum standards on national deposit insurance policies. This directive, however, is silent on several important features of deposit insurance such as the level of the deposit insurance premium. Hence, it may not preclude regulatory competition in Europe.

Keywords: deposit insurance; international deposit (search for similar items in EconPapers)
JEL-codes: F34 G18 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cfn, nep-ias and nep-rmg
Date: 2003-02-18
Note: Type of Document - pdf; prepared on IBM PC - PC-TEX/UNIX Sparc TeX; to print on HP/PostScript/Franciscan monk; pages: 36 ; figures: included. Working paper - European Commission
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http://129.3.20.41/eps/if/papers/0302/0302001.pdf (application/pdf)

Related works:
Working Paper: Deposit Insurance and International Bank Deposits (2003)
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpif:0302001

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