Determinants of deposit-insurance adoption and design
Asli Demirguc-Kunt,
Edward Kane and
Luc Laeven
Journal of Financial Intermediation, 2008, vol. 17, issue 3, 407-438
Abstract:
This paper identifies factors that influence decisions about a country's financial safety net, using a comprehensive data set covering 180 countries during the 1960-2003 period. Our analysis focuses on how private interest-group pressures, outside influences, and political-institutional factors affect deposit-insurance adoption and design. Controlling for macroeconomic shocks, quality of bank regulations, and institutional development, we find that both private and public interests, as well as outside pressure to emulate developed-country regulatory schemes, can explain the timing of adoption decisions and the rigor of loss-control arrangements. Controlling for other factors, political systems that facilitate intersectoral power sharing dispose a country toward design features that accommodate risk-shifting by banks.
Keywords: Deposit; insurance; Bank; regulation; Political; economy; Institutions (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (89) Track citations by RSS feed
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1042-9573(08)00010-7
Full text for ScienceDirect subscribers only
Related works:
Working Paper: Determinants of Deposit-Insurance Adoption and Design (2007) 
Working Paper: Determinants of deposit-insurance adoption and design (2006) 
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: https://EconPapers.repec.org/RePEc:eee:jfinin:v:17:y:2008:i:3:p:407-438
Access Statistics for this article
Journal of Financial Intermediation is currently edited by Elu von Thadden
More articles in Journal of Financial Intermediation from Elsevier
Bibliographic data for series maintained by Catherine Liu ().