Deposit Insurance and Crisis Management
Author | : G. G. Garcia |
Publisher | : International Monetary Fund |
Total Pages | : 86 |
Release | : 2000-03 |
ISBN-13 | : UCSD:31822028585792 |
ISBN-10 | : |
Rating | : 4/5 ( Downloads) |
Download or read book Deposit Insurance and Crisis Management written by G. G. Garcia and published by International Monetary Fund. This book was released on 2000-03 with total page 86 pages. Available in PDF, EPUB and Kindle. Book excerpt: A well-designed deposit insurance system (DIS) will provide incentives for citizens to keep the financial system sound. However, a poorly designed DIS can foster a financial crisis. This paper, therefore, makes recommendations for creating and running a limited, incentive-compatible, DIS. The paper also examines factors in the decision to grant, temporarily, a comprehensive guarantee, and the design of that guarantee, should a systemic financial crisis nevertheless occur. It concludes with guidance on the removal of that guarantee.