Management of Deposit Insurance Schemes
INTRODUCTION
This course will discuss deposit insurance and failed bank resolution systems: the role they play in a nation’s financial safety net; the advantages and disadvantages such systems provide; the establishment, coverage and funding of such systems; the linkage with supervision and licensing; and failed bank receivership and resolution processes and considerations. While deposit insurance systems are in place in many countries through-out the world, it is based heavily on the principal features of the deposit insurance system and some of the lessons we have learned from it.
Course Objective
- to reimburse depositors after bank failure and to contribute to the stability of a financial system.
- enhancing the safety and soundness of the financial system, improving the stability of the financial system, and protecting depositors
- prevents the collapse of illiquid but fundamentally solvent financial institutions through appropriate bridging measures in coordination with the financial supervisory institutions and the central bank
The focus is on deposit insurance for commercial banks, financial regulators their ability to protect household savings in banks.