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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Bibliographic Details
Main Author: Cyrine Snen
Format: Article
Language:English
Published: THOT Publishing House 2021-11-01
Series:Journal of Research and Innovation for Sustainable Society
Subjects:
Online Access:http://jriss.4ader.ro/pdf/2021-02/24_Ec.pdf
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author Cyrine Snen
author_facet Cyrine Snen
author_sort Cyrine Snen
collection DOAJ
description 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
language English
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spelling doaj.art-765a1c275efc43b9b5a5c56042f699132022-12-21T19:51:54ZengTHOT Publishing HouseJournal of Research and Innovation for Sustainable Society2668-04162021-11-013221522010.33727/JRISS.2021.2.24:215-220Deposit insurance and banking stabilityCyrine Snen0University of Manouba, Business School of Tunis, Tunis, TunisiaMany 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 Crisishttp://jriss.4ader.ro/pdf/2021-02/24_Ec.pdffinancial systemstabilityrisk-takingdeposit insurancebank risk
spellingShingle Cyrine Snen
Deposit insurance and banking stability
Journal of Research and Innovation for Sustainable Society
financial system
stability
risk-taking
deposit insurance
bank risk
title Deposit insurance and banking stability
title_full Deposit insurance and banking stability
title_fullStr Deposit insurance and banking stability
title_full_unstemmed Deposit insurance and banking stability
title_short Deposit insurance and banking stability
title_sort deposit insurance and banking stability
topic financial system
stability
risk-taking
deposit insurance
bank risk
url http://jriss.4ader.ro/pdf/2021-02/24_Ec.pdf
work_keys_str_mv AT cyrinesnen depositinsuranceandbankingstability