Building deposit insurance systems in developing countries
July 12, 2017 Editor 0
Deposit insurance systems (DIS) play a key role in building confidence among depositors and helping keep their money safe. However, deposit insurance should never be considered a “magic bullet,” a “quick fix” or a stand-alone solution to maintain financial stability.
The 2008 global financial crisis created a crisis of confidence in banking systems around the world. As a response, the number of countries with deposit insurance systems quickly shot up from 84 (in 2003) to 125 (in 2016). For the existing DIS, this period tested their design and effectiveness.
Over the past decade, the FIRST Initiative has funded 16 projects across the globe to assist in strengthening existing deposit insurance systems or establishing new ones. Drawing from these experiences, we recently published a Lessons Learned Note on the Challenges in Building Effective Deposit Insurance Systems in Developing Countries. The note provides seven lessons learned from our work across the six World Bank regions and provides a number of specific country examples.
The note provides insights to better understand: (1) the role of a DIS, (2) how to design an appropriate framework and (3) keys to effective implementation and operations.
- Can ‘fintech’ innovations impact financial inclusion in developing countries?
- Human Capital as Source of Innovativeness in Subsistence Small Businesses
- Six Things You Need to Know About Crowdfunding in Developing Countries
- Want to support enterprise development in developing countries? Think about the other salient factors. An investigation of Zimbabwe and Pacific Island countries
- 5 Unanswered Questions on Expanding Digital Economies in Developing Countries
- Beekeeping innovation for sustaining rural livelihoods. A success story
Categories: Finance, World Bank PSD
Does institutional context matter in building innovation capability? Defining social entrepreneurship: a Schumpeterian non-solution
Subscribe to our stories
- Entrepreneurial Alertness, Innovation Modes, And Business Models in Small- And Medium-Sized Enterprises December 30, 2021
- The Strategic Role of Design in Driving Digital Innovation June 10, 2021
- Correction to: Hybrid mosquitoes? Evidence from rural Tanzania on how local communities conceptualize and respond to modified mosquitoes as a tool for malaria control June 10, 2021
- BRIEF FOCUS: Optimal spacing for groundnuts in smallholder farming systems June 9, 2021
- COVID-19 pandemic: impacts on the achievements of Sustainable Development Goals in Africa June 9, 2021
Popular Post-All time
- A review on biomass-based... 1k views
- Apply Now: $500,000 for Y... 834 views
- Can blockchain disrupt ge... 816 views
- Test Your Value Propositi... 779 views
- Prize-winning projects pr... 740 views