Summary |
Volume II, concerned with the topic of deposit insurance, looks at the arguments for and against its adoption and the problems encountered in its implementation. It also addresses the reforms instituted in the USA and Japan in recent years.
Although most countries in the world now employ some form of deposit insurance scheme—strictly speaking, deposit protection is perhaps a better description as, unlike other forms of insurance, deposit insurance is used primarily to reduce the risk of the insured event occurring ( that is, the collapse of a deposit- taking intermediary) rather than as a means of compensating those who would suffer should the event actually occur; moreover, few countries attempt to link the levies on those institutions covered by the schemes to actuarial calculations of ex ante risk – fierce debate still rages in the academic community about its desirability.
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