What is it about?
The paper is about now introducing explicit deposit insurance in countries results in restructuring of the deposits.
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Why is it important?
The paper shows that introducing explicit deposit insurance in countries would lead to a shift towards long term deposits increasing. However it also finds that total deposits have fallen after the introduction of the new insurance scheme. It also shows how designing the scheme differently can fix the problem.
Perspectives
Financially unstable countries should be careful when thinking about implementing explicit deposit insurance.
Khalil Ullah Mohammad
Bahria University
Read the Original
This page is a summary of: An Empirical Investigation into the Effect of Explicit Deposit Insurance and Design on the Liability Structure of Banks, Journal of Central Banking Theory and Practice, September 2019, De Gruyter,
DOI: 10.2478/jcbtp-2019-0030.
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