Summary |
This collection of edited papers takes a step back, as well as a step forward, to evaluate the utility of deposit insurance systems to protect the interests of depositors, as well as market confidence, in a ost-1990s economic environment where international financial stability is of paramount importance. This work sets out the case for some form of limited ‘rules-based’ explicit deposit insurance system as part of a wider official financial safety-net, including a formal system of bank regulation and supervision. In this analysis attention is given to the responsibilities of a deposit insurer, whether we are dealing with it as a relatively simple ‘paybox’ system, or a system where the deposit insurer is the protector of depositor interests and crisis manager by way of insolvency practitioner. Indeed, the issue of bank insolvency is considered at length in both domestic and cross-border settings, where the issues are particularly acute. Whether the current arrangements in many jurisdictions are actually capable of assisting significantly in the orderly resolution of a bank failure and the payment of compensation to depositors across borders remains doubtful.
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