Deposit Insurance Systems : Addressing Emerging Challenges in Funding, Investment, Risk-Based Contributions and Stress Testing
The main public policy objectives of a deposit insurer are to reimburse depositors after bankfailure and to contribute to the stability of a financial system. To achieve these objectivesand to build public confidence in a deposit insurance system,...
| Main Authors: | , |
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Vienna
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/824821511878338917/Deposit-insurance-systems-addressing-emerging-challenges-in-funding-investment-risk-based-contributions-and-stress-testing http://hdl.handle.net/10986/28949 |
| Summary: | The main public policy objectives of a
deposit insurer are to reimburse depositors after
bankfailure and to contribute to the stability of a
financial system. To achieve these objectivesand to build
public confidence in a deposit insurance system, deposit
insurers musthave operational readiness to be able to act
quickly after a bank failure. Sound fundingarrangements are
essential aspects of such readiness, as they ensure prompt
reimbursementof insured depositors and sufficient funds for
the deposit insurer to unwind the institution.Depositor
confidence depends, in part, on knowing that adequate funds
for depositinsurance would always be available to ensure the
prompt reimbursement of their claims. Itis therefore
considered a best practice to build credible ex-ante funding
mechanisms whichhave the financial capacity to ensure that
these obligations are met. |
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