Deposit Insurance and Financial Development

Cull, Robert ; Senbet, Lemma W. ; Sorge, Marco

World Bank, Washington, DC

关键词: ALLOCATION OF RESOURCES;    ASSET SUBSTITUTION;    BALANCE SHEETS;    BANK ASSETS;    BANK CAPITAL;   

DOI  :  10.1596/1813-9450-2682
RP-ID  :  WPS2682

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The authors examine the effect ofdifferent design features of deposit insurance, on long-runfinancial development, defined to include the level offinancial activity, the stability of the banking sector, andthe quality of resource allocation. Their empirical analysisis guided by recent theories of banking regulation, thatemploy an agency framework. The authors examine the effectof deposit insurance on the size, and volatility of thefinancial sector, in a sample of fifty eight countries. Theyfind that generous deposit insurance, leads to financialinstability in lax regulatory environments. But in soundregulatory environments, deposit insurance does have thedesired impact on financial development, and growth. Thus,countries introducing a deposit insurance scheme, need toensure that it is accompanied by a sound regulatoryframework. Otherwise, the scheme will likely lead toinstability, and deter financial development. In weakregulatory environments, policymakers should at least limitdeposit insurance coverage.