Deposit insurance and banking stability
Many countries provide extensive deposit insurance as a part of a safety net that promotes stability in the financial system. An unintended conequence of deposit insurance is that it reduces depositors’ incentives to supervise banks, leading to excessive risk-taking. The article discussed the rel...
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| Format: | Article |
| Language: | English |
| Published: |
THOT Publishing House
2021-11-01
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| Series: | Journal of Research and Innovation for Sustainable Society |
| Subjects: | |
| Online Access: | http://jriss.4ader.ro/pdf/2021-02/24_Ec.pdf |
| Summary: | Many countries provide extensive deposit insurance as a part of a safety net that
promotes stability in the financial system. An unintended conequence of deposit insurance is that
it reduces depositors’ incentives to supervise banks, leading to excessive risk-taking. The article
discussed the relationship between deposit insurance, bank risks and systemic vulnerabilities
before and during the Great Financial Crisis |
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| ISSN: | 2668-0416 |