Deposit Insurance Schemes Funding, Policy and Operational Challenges

This book provides a comprehensive overview of funding arrangements for explicit deposit insurance schemes. Responding to international guidelines and best practice, it discusses policy decisions and operational challenges which deposit insurers face in t

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Deposit Insurance Schemes Funding, Policy and Operational Challenges

Djurdjica Ognjenovic

Palgrave Macmillan Studies in Banking and Financial Institutions Series Editor Philip Molyneux Bangor University Bangor, United Kingdom

The Palgrave Macmillan Studies in Banking and Financial Institutions series is international in orientation and includes studies of banking systems in particular countries or regions as well as contemporary themes such as Islamic Banking, Financial Exclusion, Mergers and Acquisitions, Risk Management, and IT in Banking. The books focus on research and practice and include up to date and innovative studies that cover issues which impact banking systems globally. More information about this series at http://www.springer.com/series/14678

Djurdjica Ognjenovic

Deposit Insurance Schemes Funding, Policy and Operational Challenges

Djurdjica Ognjenovic Zagreb, Croatia

Palgrave Macmillan Studies in Banking and Financial Institutions ISBN 978-3-319-51142-9    ISBN 978-3-319-51143-6 (eBook) DOI 10.1007/978-3-319-51143-6 Library of Congress Control Number: 2017933086 © The Editor(s) (if applicable) and The Author(s) 2017 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Cover illustration: © Zoonar GmbH / Alamy Stock Photo Printed on acid-free paper This Palgrave Macmillan imprint is published by Springer Nature The registered company is Springer International Publishing AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

Foreword

The funding deposit insurance scheme (DIS) is one of the most important elements in creating and maintaining a credible safety net and enabling DIS to fulfill its role when deposits become unavailable due to bank failure. When funding is not designed properly, the financial capacity of the DIS is weak and its available funds are non-proportional to its liabilitie