Public Information - Requirement of Deposit Guarantee Schemes

Nadia Elena Sandulescu
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Nadia Elena Sandulescu: West University, Timisoara, Romania

REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, 2012, vol. 13, issue 3, 387-393

Abstract: Deposit guarantee schemes are organized in order to protect depositors of credit institutions which have not the means to find out about their financial situation, and also to increase banking system stability by avoiding massive withdrawals from credit institutions which appear on suspicion of financial problems. But the mission of such a scheme can’t be satisfied in the absence of proper organization activity of public information on deposit insurance parameters. Trust is an important parameter that is critical for the functionality and performances of the financial sector and for the deposit guarantee schemes. But we don’t have to forget that trust is a fragile element and it has to be permanently strengthened by all the institutions and stakeholders that are acting in the financial market.

Keywords: deposit insurance; public communication; guaranteed ceiling; compensations’payments. (search for similar items in EconPapers)
JEL-codes: G20 G21 (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:rom:rmcimn:v:13:y:2012:i:3:p:387-393

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