Deposit Insurance Around the World: A Data Base

Deposit Insurance Around the World: A Data Base

Asli-Demirguc-Kunt and Tolga Sobaci

May 1, 2000

The World Bank

Deposit Insurance Around the World: A Data Base

This paper assembles a data-set on explicit deposit insurance system (DIS)

arrangements that are currently in place around the world. A large section of the dataset

is constructed by the survey results of a working paper of the International Monetary

Fund (Garcia, 1999). Additionally, the dataset compiles information from other sources,

specifically for the section on coverage limits of the DISs in national currencies. The

appendix presents the database, data sources and individual country notes.

Majority of the data is coded through dummy variables to represent the presence or

absence of the DIS features. Few other DIS features that are not suitable for binary

coding are categorized using range of numeric values. The main motive for providing the

data in this specific format is to provide researchers with a dataset that can be readily

processed by computer applications for quantitative analysis.

What is Deposit Insurance?

Deposit insurance is one of the mechanisms employed by governments to promote

the stability of banking systems as well as to protect small depositors from losses due to

bank failures. It is a complementary element of an extensive financial safety net that

includes banking law and regulations, central bank lender of last resort facilities, and

banking supervision.

Most of the countries adopted their deposit insurance systems as a response to

banking crises they had faced. About two thirds of the explicit DISs have been

established over the course of the past fifteen years (Figure 1). As of Spring 1999, a total

of sixty-eight countries had explicit deposit systems in place. (Table 1)

Deposit Insurance System Features

The following section provides descriptions of deposit features and information on

the presentation methodology of the database.

A - Explicit vs. Implicit Deposit Insurance

The foremost difference between an explicit and implicit deposit insurance system

is the presence of a formal arrangement establishing a guarantee scheme for deposits

through some form of legislation such as the central bank law, banking law, or the

constitution. Often times these formal arrangements also explicate the main features of

the systems such as the beginning date of coverage, type of deposits and institutions

covered, maximum coverage limits, funding arrangements, membership, administration,

and resolution mechanisms of failed banks.

In the absence of such formal arrangements for deposit insurance we assume the

country has an “implicit” deposit insurance system. This is due to the fact that whether or

not the elements of insurance are defined by explicit statutes, authorities in every country

establish a de facto insurance system for banks.

Type: The first variable in the database identifies the form of the deposit insurance

present in each country. According to the definition above, the form of deposit insurance

can be either explicit or implicit. Countries with explicit deposit insurance systems are

coded with the value of “1”, and the rest of the countries are coded with “0”.

Date Enacted/Revised: The variable provides the year in which an explicit deposit

insurance system was enacted and also if any, the year of revisions made to the system.

B - Coverage Variables

Extent Of Coverage

Deposit insurance systems vary in the extent and the amount of coverage that they

provide to depositors. In line with their objectives, the DIS arrangements further specify

the types of deposits, types of institutions, and the maximum amount of deposits

guaranteed by the scheme.

Countries aiming to protect their payments systems only, limit the DISs guarantee

to deposits with commercial banks and to other depository institutions providing payment

transactions. DISs pursuing broader objectives may choose to extend guarantees to a

wider range of institutions such as savings banks, savings & loans associations, credit

unions and etc.

Some countries have adopted more than one DIS offering protection to different

types of institutions, typically one for commercial banks and one for other deposit taking

institutions. Japan, France, Italy Germany, Iceland, Norway currently have two separate

DIS, and Spain has three of them. For countries that have more than one DIS, the

database provides information on the features that apply to the DIS of the commercial

banks.

The overall objective of the DIS also determines the types of deposits that will be

covered by the system. Some or all of the large deposit groups - foreign deposits of

domestic banks, domestic deposits of foreign banks, inter-bank deposits, and deposits

denominated in foreign currencies - are often excluded from the coverage of the DISs.

The database contains data on the coverage for inter-bank deposits, and deposits

denominated in foreign currencies.

Foreign Currencies

Systems offering coverage to deposits denominated in foreign currencies are coded

with “1” whereas systems excluding such deposits are coded with “0”. Some DISs offer

protection only to deposits denominated in a certain set of currencies. Austria, Belgium,

and France extend coverage to deposits in ECU or to the currencies of other members of

the EU, whereas Gibraltar, Ireland, Lithuania, and the United Kingdom extend coverage

to deposits in sterling, ECU or to the currencies of other members of the EU. These

countries are also coded with “1”.

Inter-Bank Deposits

Most of the countries with explicit DISs do not extend coverage to inter-bank

deposits. This is mainly due to the reason that, unlike small depositors, banks do possess

the resources to monitor the creditworthiness of the institutions that they hold their

deposits with. Extending coverage to inter-bank deposits would eliminate the incentives

of banks to monitor other banks, and weaken the market discipline placed on the overall

banking system.

DISs extending coverage to inter-bank deposits are coded with “1”, and ones

excluding such deposits are coded with “0”.

Amount Of Coverage

The amount of coverage is another feature that affects the degree of market-

discipline imposed on the banking system by the depositors. In a system with very low

coverage limits, all depositors – regardless of size – would have the incentive to seek

sounder banks for their deposits. Even though placing low protection limits would lead to

higher levels of market discipline, it would contradict with one of the purposes of having

a DIS in place, which is to protect the small depositors lacking the resources for

monitoring the soundness of banks. On the other hand, having excessively high coverage

limits would eliminate the incentives of depositors to monitor the banks, and

consequently reduces the market discipline in the banking system.

Nevertheless as of Spring 1999 the DISs in Korea, Japan, Turkey, Colombia,

Mexico and Ecuador provided unlimited coverage to their depositors. Most of these

countries temporarily eliminated their maximum coverage limits (Japan until March 31,

2001, Korea until 2000, Colombia and Ecuador, and Mexico until 2001) in the wake of

banking crises.

In addition to setting a maximum level of coverage, some countries have

incorporated co-insurance mechanisms into their DISs. In a system with co-insurance, a

fraction of the covered amount is insured by the scheme and the loss on the remainder is

borne by the depositor. As of Spring 1999 there were 17 DISs with co-insurance

mechanisms in place (Table 2).

The amount of coverage provided by DISs varies from one system to an other

(Figure 2). Often times these set coverage limits are adjusted occasionally according to

the level of prices or due to policy changes.

The database provides four sets of variables regarding the coverage limits and one

set for the co-insurance arrangements for the DIS.

Coverage Limits 1: Provides coverage limits of the DISs in US dollars or ECU that were

in effect during the first half of 1999.

Coverage Limits 2: Provides coverage limits in US dollars, using the exchange rates at

the end of June 1998.

Coverage Limits 3: Coverage limits in national currencies, taken from a dataset that

builds on the survey results of a working paper of the IMF (Kyei, 1995) with information

gathered from various sources until September 1998.

Coverage Ratios: Ratio of the coverage limits to 1998 DGP per capita.

Co-Insurance: Indicates whether there is co-insurance or not. A value of “1” indicates the

presence of co-insurance, and a “0” indicates the absence of the feature.

C - Funding Variables

DISs fall into two categories in regard to the way they are funded by banks. The

most conventional type is the funded system, in which the member institutions make

periodic contributions to an established fund. The fund is intended to serve as the primary

source for reimbursing the depositors in bank failures. The alternative type is the

unfunded system with no permanently maintained funds in place. In such systems

members are required to contribute to the fund after a bank failure occurs. The only

exception to this classification is Chile, which has an unfunded system with the

government as the only contributor to the fund. As of Spring 1999 only ten countries1 out

of sixty-eight had unfunded DISs and eight of these countries were European.

1 Countries with un-funded DISs are: Austria, Bahrain, Chile, France, Gibraltar, Italy, Luxembourg,Netherlands, Switzerland, United Kingdom.

Banks contribute to the fund by paying periodic premiums that either could be a

fixed or a variable rate. The premiums that vary according to the riskyness of their

assessment bases are referred to as the risk-adjusted premiums. As of 1995 only United

States had a system with risk-adjusted premiums. Since then the number of countries with

risk-adjusted DISs has gone up to twenty-one (Table 3).

The assessment bases for the contributions also vary from one system to another.

The most common premium bases are the deposits, and the insured deposits. However

there are some systems that use either of the following as assessment bases; deposits and

non-performing loans, insured liabilities, domestic obligations, and all obligations.

Permanent Fund :This variable indicates whether the system has a permanently

maintained fund or not. Funded systems are coded with “1’, and unfunded systems with

“0”.

Premium or Assessment Base: This set provides the part of members’ liabilities that are

used as basis to determine the contribution amounts made to the fund.

Annual Premiums: This set provides the banks’ annual premiums that are applied to thebasis.

Risk-Adjusted Premiums: Indicates whether the premiums are risk-adjusted or not. Risk-

adjusted systems are coded with “1”, and the fixed premiums with “0”.

Source Of Funding

In addition to the premiums collected from the banks, most DISs can also resort to

public funds when needed. Public funds can be in the forms of initial contributions at the

establishment stage of the scheme, loans extended to the fund by the central banks, and

losses borne by the governments. Whereas some DISs have access to both private and

public funds, some have access to only one of them. Our database categorizes the source

of DIS funding in three groups. (Figure 3). The DISs having possible access to both

sources as classified as “jointly funded” and they are coded with the value of “1” in the

dataset. Systems that are exclusively funded by the banks are considered to be “privately

funded” and are coded with “0”. Similarly systems exclusively funded by public funds

are classified as “publicly funded” and coded with “2”. The only country that has an

exclusively publicly funded DIS is Chile.

Administration

The administration forms of the systems can be broken down into three main

categories: official, joint, and private administration (Figure 4).The three forms of

administration are coded with the values of “1”, “2”, and “3” respectively. Systems that

are administered by the central banks are included in the official administration category.

Even though some systems are administered by private agencies they have limited

authorities. In Italy all of the decisions, and in Croatia some of the decisions must be

approved by the central bank. The DISs in Italy and Croatia are considered to have joint

administration in our database.

Membership

DIS arrangements also state whether membership to the system is compulsory or

voluntary. As of Spring 1999 a majority of the DISs were compulsory. The compulsory

systems are coded with “1”, and the voluntary systems with “0” in the dataset. The

following countries have voluntary DISs; Cameroon, Central African Republic, Chad,

Republic of Congo, Equatorial Guinea, Gabon, Marshall Islands, Micronesia, Sri Lanka,

Taiwan, Macedonia, Dominican Republic and Switzerland.

Figure 1

Cross-Country trend in the adoption of explicit deposit insurance

13 4

6 79 10

12 13 14 1517 18 19 20

22

27

3032

3436

38

41

44

48

54 55

60

68

0

5

10

15

20

25

30

35

40

45

50

55

60

65

70

75

Years

Figure 2

Ratios of Deposit Coverage to per capita GDP in Selected Countries, 1999

PolandUkraineLatviaEstoniaLuxembourgSwitzerlandLebanonDenmarkBelgiumBahrainChileIcelandIrelandGermanyNetherlandsAustriaHungary

SpainFinlandSwedenBulgariaGabonUnited KingdomPortugalTanzania

Trinidad & TobagoSri LankaVenezuelaGreeceJamaicaRomaniaNigeriaSlovak RepublicCanadaLithuaniaColombiaCzech Rep.

El SalvadorFrancePhilippinesEquatorial Guinea

ArgentinaUnited StatesCrotiaTaiwan

BrazilCongo

KenyaItalyIndiaBangladesh

Dominican RepublicNorway

UgandaPeru

OmanCameroon

Central African Rep.Chad

Macedonia

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 16.0

Deposit coverage/ per capita GDP, times

Figure 3

Distribution of Deposit Insurance Systems by Funding Types

Figure 4

Distribution of Deposit Insurance Systems by Administration Types

Distribution of DISs by Funding Types

15

51

1

PrivateJointPublic

Distribution of DISs by Administration Types

33

24

11

Official

Joint

Private

Table 1

Countries With Explicit Deposit Insurance Systems As Of Spring 1999

Argentina

Austria

Bahrain

Bangladesh

Belgium

Brazil

Bulgaria

Cameroon

Canada

Central African Republic

Chad

Chile

Colombia

Congo

Croatia

Czech Republic

Denmark

Dominican Republic

Ecuador

El Salvador

Equatorial Guinea

Estonia

Finland

France

Gabon

Germany

Gibraltar

Greece

Hungary

Iceland

India

Ireland

Italy

Jamaica

Japan

Kenya

Korea

Latvia

Lebanon

Lithuania

Luxembourg

Macedonia

Marshall Islands

Mexico

Micronesia

Netherlands

Nigeria

Norway

Oman

Peru

Philippines

Poland

Portugal

Romania

Slovak Republic

Spain

Sri Lanka

Sweden

Switzerland

Taiwan

Tanzania

Trinidad & Tobago

Turkey

Uganda

Ukraine

United Kingdom

United States

Venezuela

Table 2

Deposit Insurance Systems With Co-Insurance

Austria1

Chile2

Colombia

Czech Republic

Dominican Republic

Estonia

Germany

Gibraltar3

Iceland4

Ireland

Lithuania

Luxembourg

Macedonia

Oman

Poland

Portugal

United Kingdom

1Natural persons deposits are covered in full, while coverage for other non-household savings is limited to90% of the guaranteed deposits.2 The Chilean Central Bank guarantees demand deposits in full. Household savings and time deposits areco-insured 90% by the government to UF 120 per person per year.3 Lesser of 90% co-insurance or 20000 ECU.4 Coverage in Iceland in principle is full. The minimum is 20000 ECU. Above that, payment is inproportion to the resources of the fund.

Table 3

Deposit Insurance Systems With Risk-Adjusted PremiumsArgentina

Bulgaria

Cameroon

Central African Republic

Chad

Republic of Congo

El Salvador

Equatorial Guinea

Finland

Gabon

Hungary

Italy

Macedonia

Marshall Islands

Micronesia

Peru

Portugal

Romania

Sweden

Turkey

United States

Appendix: Deposit Insurance Systems Database

Countries Type Date Enacted /Revised

ForeignCurrencies

Inter-BankDeposits

Coverage Limits-1 Coverage Limits-2 Coverage Limits-3 CoverageRatios

Co-insurance

Permanent Fund Premium orAssessment Base

Annual Premiums Risk-AdjustedPremiums

Source ofFunding

Administration Membership

% of base 0 = Private official=1

explicit=1 yes=1 yes=1 US$ or ECU US$ as of Sep 1998 Yes=1 funded=1 yes=1 1= Joint joint=2 compulsory=1

implicit=0 no=0 no=0 No=0 unfunded=0 no=0 2= Public private=3 voluntary=0

Afghanistan 0

Albania 0

Algeria 0

Angola 0

Argentina 1 1979/1995 1 0 30000 30000 20,000 US $ 3 0 1 insured deposits risk-based, 0.36 to 0.72 1 0 3 1

Armenia 0

Australia 0

Austria 1 1979/1996 1 0 $24,075 but coinsurance forbusinesses

24075 260000 ATS 1 1 0 insured deposits pro rata, ex-post 0 1 3 1

Azerbaijan 0

Bahamas 0

Bahrain 1 1993 1 0 5640 5640 1 0 0 deposits ex post 0 0 2 1

Bangladesh 1 1984 0 0 2123 2123 Tk 60,000 6 0 1 deposits 0.005 0 1 1 1

Barbados 0

Belarus 0

Belgium 1 1974/1995 1 0 15,000 ECU until year 2000 16439 15,000 ECU 1 0 1 insured liabilities 0.02 + 0.04 0 1 2 1

Belize 0

Benin 0

Bhutan 0

Bolivia 0

Bosnia-Herz. 0

Botswana 0

Brazil 1 1995 1 0 17000 17000 Reais 20,000 4 0 1 insured deposits 0.3 0 0 3 1

Brunei 0

Bulgaria 1 1995 1 0 1784 1784 Max. 80% of5,000,000 lev.

1 0 1 insured deposits risk based to 0.5 1 1 2 1

Burkina Faso 0

Burundi 0

C. Verde Is. 0

Cambodia 0

Cameroon 1 1999 0 1 5336 5336 9 0 1 deposits and non-performing loans

risk based: 0.15% ofdeposits + 0.5% of net non-performing loans

1 1 2 0

Canada 1 1967 0 1 40770 40770 60,000 Can. $ 2 0 1 insured deposits 0.33 max 0 1 1 1

Central AfricanRep.

1 1999 0 1 3557 3557 13 0 1 deposits and non-performing loans


1 1 2 0

Chad 1 1999 0 1 3557 3557 15 0 1 deposits and non-performing loans


1 1 2 0

Chile 1 1986 1 0 demand deposits in full and90% coinsurance to UF 120 of

$3,600 for savings deposits

3600 90% of demanddeposits up to 120

Ch$

1 1 0 not applicable none 0 2 1 1

China 0

Colombia 1 1985 0 1 in full until 2001, thencoinsurance to $5,500

5500 75% per deposit orCol$ 10 Mil.

2 1 1 insured deposits 0.3 0 0 1 1

Comoro Is. 0

Congo

0

Costa R

ica0

Cote d'Ivoire

0

Croatia

11997

10

1530015300

30

1insured deposits

0.80

12

1

Cuba

0

Cyprus

0

Cyprus

0

Czech R

ep.1

19940

0coinsurance to $11,756

1175690%

of 400,000 CZK

21

1insured deposits

comm

ercial banks 0.5,savings banks 0.1

01

11

Denm

ark1

1988/19981

020000 EC

U21918

300,000 DKr

10

1insured deposits

0.2 (maxim

um)

01

21

Djibouti

0

Dom

inicanR

epublic1

19621

0coinsurance to $13,000

13000R

D $ 8,000

71

1deposits

0.18750

12

0

Ecuador1

19991

1in full to year 2001

01

deposits0.65

0n.a.

11

Egypt0

El Salvador1

19991

04720

4720C

30,0002

01

insured depositsrisk-based, 0.1 to 0.3

11

11

EquatorialG

uinea1

19990

13557

35573

01

deposits and non-perform

ing loansrisk based: 0.15%

ofdeposits + 0.5%

of net non-perform

ing loans

11

20

Eritrea0

Estonia1

19981

0coinsurance 90%

of $1383, but20,000 EC

U in year 2010

138390%

of 20,000 EKK0

11

deposits until 20020.5 (m

aximum

)0

12

1

Ethiopia0

Fiji0

Finland1

1969/1992/19981

029435

29435150,000 FIM

10

1insured deposits

risk based: 0.05 to 0.31

13

1

France1

1980/19951

065387

65387400,000 Fr

30

0n.a.

on demand but lim

ited0

03

1

Gabon

11999

01

53365336

10

1deposits and non-perform


deposits+ 0.5%

net npls1

12

0

Gabon

0

Gam

bia0

Georgia

0

Germ

any1

1966/1969/19981

0private: 30%

of capital; officialcoinsurance 90%

to 20000EC

U

2191830%

of bank's equitycapital

11

1insured deposits incom

mercial banks D

IS,risk-assets in other D

IS

official is 0.03 but can bedoubled

00

31

Ghana

0

Gibraltar

11998

1n.a.

lesser of 90% coinsurance or 20,000 EC

U1

0insured deposits

administrative expenses

and ex-post contributions0

02

1

Greece

11993/1995

10

20,000 ECU

2191820,000 EC

U2

01

depositsdecreasing by size: 1.250 to0.025

00

21

Grenada

0

Guatem

ala0

Guinea

0

Guinea-Bissau

0

Guyana

0

Haiti

0

Honduras

0

Hong Kong

0

Hungary

11993

10

4,165 ECU

or $4,5644564

1,000,000 Ft1

01

insured depositsrisk based to 0.3

11

21

Iceland1

1985/19961

020,000 EC

U21918

80 % for deposits

with com

mercial

banks and 67 % for

savings bankdeposits

11

1insured deposits

0.150

01

1

India1

19611

02355

2355R

s 100,0006

01

deposits0.05

01

11

Indonesia0

Iran0

Iraq0

Ireland1

1989/19951

0coinsurance 90%

to 15,000EC

U16439

90% of 20,000 EC

U1

11

EU and EEA, i.e insured

deposits0.2

00

11

Israel0

Italy1

1987/19961

0125000

125000100%

of first 200M

il. ITL and 80% of

next 800Mil.

60

0protected funds adjustedfor size and risk

risk adjusted ex-post 0.4 to0.8

11

21

Jamaica

11998

10

55125512

20

1insured deposits

0.10

11

1

Japan1

19710

0$71,000, but in full until M

arch 2001unlim

ited0

1insured deposits

0.0048 + 0.0360

12

1

Jordan0

Kazakhstan0

Kenya1

19851

11750

1757K Sh 100,000

50

1deposits

0.150

11

1

Kiribati0

Korea1

19960

0$14,600, but in full until the year 2000

unlimited

01

deposits0.05

01

11

Kuwait

0

Kyrgyz Republic

0

Laos0

Latvia1

19981

0$830 until year 2000

830500 Lat

00

1insured deposits

0.30

11

1

Lebanon1

19670

13300

330030,000 LL

10

1credit accounts

0.050

12

1

Lesotho0

Liberia0

Libya0

Lithuania1

19961

0$6,250 then coinsurance

62504,000 LTL

21

1insured deposits

1.50

11

1

Luxembourg

11989

10

coinsurance 90% to EC

U15000 through 1999, then to

ECU

20000

1643915,000 EC

U0

10

insured depositsex post

00

31

Macedonia

11996

10

coinsurance 75% to $183

1830

11

insured deposits1.5%

, risk-based 1% to 5%

11

20

Madagascar

0

Malaw

i0

Malaysia

0

Maldives

0

Mali

0

Malta

0

Marshall Islands

11975

11

100000100000

US $ 100,000

01

depositsrisk-based, 0.00 to 0.27

10

10

Mauritania

0

Mauritius

0

Mexico

11986/1990

11

in full except subordinated debt until 2005unlim

ited0

1all obligations

0.3 (max 0.5) plus 0.7 as

needed0

11

1

Micronesia

11963

11

100000100000

US $ 100,000

01

depositsrisk-based, 0.00 to 0.27

10

10

Moldova

0

Mongolia

0

Morocco

0

Mozam

bique0

Myanm

ar0

Nam

ibia0

Nepal

0

Netherlands

11979/1995

10

20,000 ECU

2191820,000 EC

U1

00

case by caseEx-post

01

11

New

Zealand0

Nicaragua

0

Niger

0

Nigeria

11988/1989

01

$588(at market exchange

rate), $2435 (at officialexchange rate)

58850,000 N

20

1deposits

0.93750

11

1

Norw

ay1

1961/19971

0260800

2608002,000,000 N

OK

80

1risk-w

eighted assets andtotal deposits

0.005 of assets and 0.01 oftotal deposits

01

31

Om

an1

19951

0coinsurance 75%

to $52,63052630

91

1deposits

0.020

11

1

P. N. G

uinea0

Pakistan0

Panama

0

Papua New

Guinea

0

Paraguay0

Peru1

19921

021160

211604,600 Sl.

90

1insured deposits

risk-based from 0.65 to 1.45

11

21

Philippines1

19631

12375

2375P 100,000

30

1deposits

0.20

11

1

Poland1

19951

01,000 EC

U, then 90%

coinsurance for the next 4,000EC

U

1096M

ax. 90% of 3000

ECU

01

1deposits, also risk-adjusted assets

not more than 0.4

01

11

Portugal1

1992/19951

015,000 EC

U, coinsurance to

45,000 ECU

1643933,750 EC

U1

11

insured depositsrisk-based, 0.08 to 0.12 +m

ore in emergencies

11

11

Qatar

0

Republic of

Congo

11999

01

35573557

50

1deposits and non-perform


ofdeposits + 0.5%

of net non-perform

ing loans

11

20

Rom

ania1

19961

03600

360010,000,000 Lei

20

1insured deposits

risk-based: 0.3 to 0.61

12

1

Russia

0

Rw

anda0

Saudi Arabia0

Senegal0

Seychelles0

Sierra Leone0

Singapore0

Slovak Republic

11996

10

79007900

20

1insured deposits

0.1 to 0.3 for banks0

12

1

Slovenia0

Solomon Is.

0

Somalia

0

South Africa0

Spain1

1977/19961

015,000 EC

U through 1999,

then 20,000 ECU

1643915,000 EC

U1

01

insured depositsm

aximum

of 0.20

12

1

Sri Lanka1

19870

01470

14702

01

deposits0.15

01

10

St. Lucia0

Sudan0

Suriname

0

Swaziland

0

Sweden

11996

10

28,663 ECU

, $31,41231412

250,000 SEK1

01

insured depositsrisk-based, 0.5 now

, 0.1later (future date is notavailable)

11

11

Switzerland

11984/1993

00

1970019700

30,000 Sw F

10

0balance sheet item

son dem

and0

03

0

Syria0

Taiwan

11985

00

3850038500

1,000,000 NT (since

Aug. 15, 1987)3

01

insured deposits0.015

01

10

Tajikistan0

Tanzania1

19940

0376

376T Sh 250000

20

1deposits

0.10

13

1

Thailand0

Togo0

Trinidad &Tobago

11986

11

79577957

TT $ 50,0002

01

deposits0.2

01

11

Tunisia0

Turkey1

19831

0in full

unlimited

01

insured savings depositsrisk-based 1.0 to 1.2

11

11

Turkmenistan

0

Uganda

11994

00

23102310

U Sh 3,000,000

80

1deposits

0.20

11

1

Ukraine

11998

10

250250

00

1total deposits

0.5 plus special charges0

11

1

United Arab

Emirates

0

United Kingdom

11982/1995

10

larger of 90% coinsurance to

$33,333 or 22,222 ECU

3333375 %

of 20,000 GBP

11

0EEA deposits i.e. insureddeposits

on demand

00

31

United States

11934/1991

11

100000100000

100,000 US $

30

1dom

estic depositsrisk-based, 0.00 to 0.27

11

11

Uruguay

0

Uzbekistan

0

Vanuatu0

Venezuela1

19850

07309

73094,000,000 Bs

20

1insured deposits

20

11

1

Vietnam0

W. Sam

oa0

Yemen

0

Zaire0

Zambia

0

Zimbabw

e0

Appendix

• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54),prepared by Gillian G. H. Garcia, [Washington, D.C.]; Working Paper of the International MonetaryFund, Monetary and Exchange Affairs Dept., April 1999.

• “Deposit protection arrangement: a survey”, (IMF working paper; WP/90/134), prepared by AlexanderKyei, [Washington, D.C.]; International Monetary Fund, Monetary and Exchange Affairs Dept., iii, 43p., December 1995

• Institute of International Bankers - Global Surveys (1999, 1998, 1997, 1996, 1995, 1994)

• “Bulgaria introduces law on bank deposits”, Central European; London; May 1998; Anonymous

• “Estonia – April 1998 Economic Highlights”, CEEBICnet- U.S. Embassy Reports, April 1998

• Law on "Natural Person Deposit Guarantees"; Bank of Latvia- Unofficial translation.

• “Financial Sector Reform and Banking and Banking Crises in the Baltic Countries”, Prepared by Martade Castello Brance, Alfred Kammer, and Efiie Psalida, December 1996, Working Paper of theInternational Monetary Fund.

• “Law on Deposit Insurance Fund”, Central Bank of Turkey- Unofficial Translation

• “An advisory report on Brazil's Banking Sector Safety Net and The Role of Deposit Insurance”, SamTalley, 1998; (World Bank – advisory report)

• “Belgium implements deposit guarantee-scheme”, International Financial Law Review; London; June1995; Bruyneel, Andre; Miller, Axel

• Bank of Finland Bulletin; “Reform of the Finnish deposit guarantee scheme”; Valori, Veli-Pekka;Vesala, Jukka; March 1998, Vol. 72, No:3

• "Japan: Stimulation package", Oxford Analytica Brief; December 1997, Anonymous

• “EC Deposit-Guarantee Directive”, International Financial Law Review; London; Dec 1995; Fredborg,Lars.

• Argentina: Banking Shakeout”, Oxford Analytica Brief, April 20, 1995, Anonymous.

• Act on National Deposit Insurance Fund – Ministry of Finance , Hungary

• “Korea introduces banks deposit insurance scheme”, International Financial Law Review , London,April 1997, Don Wong Ko.

• “Deposit Insurance in Nigeria : A Critical Appraisal “ A.A. Alawode, Nigerial Financial Review s:5 no4 1992

• Annual Report 1996 – Federal Deposit Insurance Corporation - USA

Argentina: (SEDESA, Law 24, 485).

Before 1979 deposits were unconditionally guaranteed by the Argentinean government.

In 1979 an explicit system of deposit insurance scheme was established. The scheme

required the banks to make contributions to the fund. Later in 1991 the scheme was

abolished and substituted by a more transparent supervision. In April 1995, an insurance

scheme was re-introduced following the suspension of five private banks by the

government. The scheme (SEDESA) covers all types of deposits except ones that pay

more than 200 basis points above the reference rate. Membership to the system is

compulsory. The scheme has private administration. Current accounts, savings accounts

and time deposits are covered up to $30000. The initial coverage limit of the system was

75% of 100 Million $Arg. This limit was reduced to 75% of 81,000 $Arg. The monthly

assessments for banks are 0.015% to 0.06% of deposits. Additional assessments set by

the central bank are also made based on a bank’s risk evaluation. The deposits of foreign

branches of Argentine banks are not subject to the scheme and deposits of foreign bank

branches in Argentine are subject to the scheme.• Institute of International Bankers – 1999 Global Survey• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,

[Washington, D.C.]; Working Paper of the International Monetary Fund, Monetary and Exchange Affairs Dept., April 1999.• “Argentina: Banking Shakeout”, Oxford Analytica Brief, April 20, 1995, Anonymous.• “Deposit Protection Arrangement: A Survey”, (IMF Working Paper; WP/90/134), prepared by Alexander Kyei, [Washington,

D.C.]; International Monetary Fund, Monetary and Exchange Affairs Dept., iii, 43 p., December 1995• “Deposit Insurance in Developing Countries”, Talley, Samuel H and Mas, Ignacio, Working Paper of Country Economics

Department, Latin America and the Caribbean Regional Office, The World Bank, November 1990

Austria: (Deposit Guarantee Fund, Credit System Act)

The Deposit Guarantee Fund was established in 1979 and was revised according to the

EU directives after 1995. The system has private administration. Funding is ex-post.

Government bonds may be issued when necessary. Initially the coverage limit was

200,000 ATS and it was raised to 260,000 ATS in April 1996. Deposits of the

government, large corporations, insiders and criminals are excluded. Natural persons’

deposits are covered in full up to the coverage limit, whereas non-households’ deposits

are covered only up to 90% of the limit.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,

[Washington, D.C.]; Working Paper of the International Monetary Fund, Monetary and Exchange Affairs Dept., April 1999.• “Deposit Protection Arrangement: A Survey”, (IMF Working Paper; WP/90/134), prepared by Alexander Kyei, [Washington,

D.C.]; International Monetary Fund, Monetary and Exchange Affairs Dept., iii, 43 p., December 1995

Bahrain:

The deposit protection scheme of Bahrain came into effect in November 1993. The

scheme has joint administration and ex-post funding. Both resident and non-resident

deposits with Bahrain offices of full commercial bank are covered. The schemes extends

coverage to both local and foreign currency deposits. The excluded deposits are;

government, illegal, inter-bank, deposits of affiliates, shareholders, directors and officers

of the banks.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,

[Washington, D.C.]; Working Paper of the International Monetary Fund, Monetary and Exchange Affairs Dept., April 1999.

Bangladesh: (Deposit Insurance Fund, Deposit Insurance Ordinance 1984)

The deposit insurance scheme of Bangladesh was established in 1984. The system

excludes the deposits of domestic and foreign governments, banks and other financial

institutions. Deposits in foreign currencies are not covered. The system is jointly

administered and financed. The agency’s finances are co-mingled within the central bank.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Belgium: (Rediscount and Guarantee Institute, Royal Order 175 and March 1982 Legislation)

Before 1995 there were two separate funds (one for banks and one for private savings

institutions) that were managed by the institute. Membership was not mandatory. After

the changes made in 1995, all institutions are required to participate in the system and

there is now only a single fund that covers all credit institutions. In 1995 the coverage

limit of 500,000 B. Fr. was changed to 15,000 ECU, which was later replaced by a limit

of 20,000 ECU in year 2000. If the funds’ liquid assets fall below a critical level, the

premiums paid by the banks can be raised by a maximum of 0.04%. The state can provide

a limited guarantee.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



• “Belgium implements deposit guarantee-scheme”, International Financial Law Review; London; June 1995; Bruyneel, Andre;Miller, Axel

Brazil: (Fundo Garantidor de Credito FGC)

FGC commenced its operations in November 1995. The scheme is privately

administered. Membership to the system is mandatory. The banks pay a premium of 0.3

% of the insured deposits. The system does not extend coverage to inter-bank deposits.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,

[Washington, D.C.]; Working Paper of the International Monetary Fund, Monetary and Exchange Affairs Dept., April 1999.• “An advisory report on Brazil's Banking Sector Safety Net and The Role of Deposit Insurance”, Sam Talley, 1998; (World Bank

– advisory report)

Bulgaria:

The deposit insurance scheme in Bulgaria was established in 1995. The scheme is jointly

administered and the membership is mandatory. Insider deposits and deposits paying

preferential interest rates are not covered. If the funds’ resources are not adequate, banks

can be called to contribute an advance premium of 1.5% of insured deposits. The systems

offers partial coverage through a coverage limit of 80 % of 5 million Ls. The fund has

the right to borrow, including from the government in the last resort to receive donations

and foreign assistance.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,

[Washington, D.C.]; Working Paper of the International Monetary Fund, Monetary and Exchange Affairs Dept., April 1999.• “Bulgaria introduces law on bank deposits”, Central European; London; May 1998; Anonymous

Cameroon:

The DIS in Cameroon was established in 1999. Cameroon is one of the 6 African

countries that share a common central bank. These 6 countries also share the same

features for their DISs that were all established in 1999. The features are as follows:

mandatory membership, joint administration, a permanent fund in place, exclusion of

deposits of foreign currencies. The assessment bases for the premiums are deposits and

non-performing loans, and the premium rate is 0.15% of deposits plus 0.5% net non-

performing loans. When necessary budgetary resources will be available form member

countries.

• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,[Washington, D.C.]; Working Paper of the International Monetary Fund, Monetary and Exchange Affairs Dept., April 1999.

Canada: (Canada Deposit insurance Corporation, Deposit Insurance Corporation Act of Canada.)

The DISs in Canada was established in 1967. Deposits are covered up to the limit of

$Can 60000, while retirement accounts and deposits held in trust received separate

protection with an additional $Can 60000. The system is jointly administered and the

membership is compulsory. The covered deposits are; savings and demand deposits, term

deposits such as guaranteed investment certificates and debenture issues by loan

companies, money orders, drafts, checks, and travelers checks issued by member

institutions. The fund can borrow from the markets and the government, but is charged at

private market rates.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Central African Republic:

The DIS in Central African Republic was established in 1999. Central African Republic

is one of the 6 African countries that share a common central bank. These 6 countries

also share the same features for their DISs that were all established in 1999. The features

are as follows: mandatory membership, joint administration, a permanent fund in place,

exclusion of deposits of foreign currencies. The assessment bases for the premiums are

deposits and non-performing loans, and the premium rate is 0.15% of deposits plus 0.5%

net non-performing loans. When necessary budgetary resources will be available form

member countries.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,


Chad:

The DIS in Chad was established in 1999. Chad is one of the 6 African countries that

share a common central bank. These 6 countries also share the same features for their

DISs that were all established in 1999. The features are as follows: mandatory

membership, joint administration, a permanent fund in place, exclusion of deposits of

foreign currencies. The assessment bases for the premiums are deposits and non-

performing loans, and the premium rate is 0.15% of deposits plus 0.5% net non-


countries.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,


Chile: (Superintendent of Banks, Banking Law)

The DIS of Chile was established in 1986. The system does not have a permanent fund in

place. The Chilean Central Bank guarantees the 100 % of the demand deposits in full,

and 90% of the household savings and time deposits up to UF 120 per person. The central

bank is responsible for demand deposits. Banks with demand deposits in excess of 2.5

times the capital reserves are required to maintain a 100% marginal reserve requirement

in short-term central bank or government securities liened to the central bank.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Colombia: (Financial Institution Guarantee Fund, Banking Law 1985)

The DIS of Colombia was established in 1985. The scheme is jointly administered and

membership to the system is mandatory. Deposits in foreign currencies are excluded

whereas inter-bank deposits are not.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Croatia:

The DIS of Croatia was established in 1997. Even though the system is privately

administered some decisions must be approved by the central bank. Inter-bank deposits

are not covered. The scheme extends coverage to deposits in foreign currencies, except to

foreign currency deposits placed prior to 1993 which were covered by a government

bond issue. The fund may borrow form the central bank.


• “Deposit Protection Arrangement: A Survey”, (IMF Working Paper; WP/90/134), prepared by Alexander Kyei, [Washington,D.C.]; International Monetary Fund, Monetary and Exchange Affairs Dept., iii, 43 p., December 1995

Czech Republic: (Deposit Insurance Fund, Act No 156, 1994)

The DISs of the Czech Republic was established in 1994. It is jointly administered.

Deposits in foreign currencies are covered whereas inter-bank deposits are not. With

regards to the government participation in funding, a law (no 156/1994) mandates that the

state will provide 50% of the funds needed for compensation of depositors by the DIF.

The central bank and the government would equally make loans to cover any shortfall in

funding.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,

[Washington, D.C.]; Working Paper of the International Monetary Fund, Monetary and Exchange Affairs Dept., April 1999.• Institute of International Bankers – 1997 Global Survey• “Deposit Protection Arrangement: A Survey”, (IMF Working Paper; WP/90/134), prepared by Alexander Kyei, [Washington,


Denmark: (Deposit Insurance Fund, Act 850, 1987; Order 118, 1988)

The DIS in Denmark was established in 1988. The system is jointly administered and

funded. The fund can borrow from banks with a possible guarantee from the government.

Foreign currency deposits are covered where as inter-bank deposits are not. The

maximum coverage limit of 200,000 ATS was raised 250,000 to ATS effective

September 1995. In compliance with the EU standards this limit is now set at 20000

ECU.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Dominican Republic: (Savings Account Insurance, National Housing Bank Law)

The DIS in Dominican Republic was established in 1962 and it only covers the savings

and loan associations. Membership to the system is not compulsory. The system is

jointly administered and funded. The government can fund the DIS through savings and

loan associations. Foreign currencies are covered whereas inter-bank deposits are not.



Ecuador:

The DIS in Ecuador was established in 1999. It excludes the deposits of owners, current

or recent directors or managers. The system is jointly administered and funded. The fund

can borrow, but it is not clear from whom. Both inter-bank and foreign currency deposits

are covered.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,


El Salvador: (Law on Financial Institutions, 1991)

The DIS in El Salvador was established in 1999. It is jointly funded and administered.

Funding through the central bank is possible. All deposits except those of banks and

insiders are covered.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Equatorial Guinea:

The DIS in Equatorial Guinea was established in 1999. Equatorial Guinea is one of the 6

African countries that share a common central bank. These 6 countries also share the

same features for their DISs that were all established in 1999. The features are as follows:







Estonia: (Savings Guarantee Fund)

The DIS system of Estonia was established in 1998. The system initially guaranteed

20,000 EEK, but will incrementally increase this amount to 20,000 ECU by the year

2010. It is a jointly funded and administered system. The government made an initial

contribution. Banks paid 50,000 EEK at the start-up. The fund can borrow without a

government guarantee or ask the government to borrow a limited amount on its behalf.

Following types of deposits are not covered; deposits in foreign currencies, deposits of

insiders, money-launders, governments at all levels, larger businesses, financial

institutions including insurance companies, other members of the same corporate group,

and those that pay “substantial higher rates”.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,

[Washington, D.C.]; Working Paper of the International Monetary Fund, Monetary and Exchange Affairs Dept., April 1999.• “Estonia – April 1998 Economic Highlights”, CEEBICnet- U.S. Embassy Reports, April 1998

Finland: (Deposit Guarantee Fund)

The DIS of Finland was established in 1969. In 1998 it was revised in accordance with

the EU directives. Before the changes deposits were covered in full. In the new system a

maximum limit of 150,000 FIM was set for the coverage limit. The scheme is privately

administered by the member banks in compliance with the rules prescribed by the

Ministry of Finance and supervised by the FSA. Foreign currency deposits are covered.

Deposits of the central bank and credit institutions are excluded. The government and

central bank have borne losses in the past.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,

[Washington, D.C.]; Working Paper of the International Monetary Fund, Monetary and Exchange Affairs Dept., April 1999.• Institute of International Bankers – 1998 Global Survey• Bank of Finland Bulletin; “Reform of the Finnish deposit guarantee scheme”; Valori, Veli-Pekka; Vesala, Jukka; March 1998,

Vol. 72, No:3• “Deposit Protection Arrangement: A Survey”, (IMF Working Paper; WP/90/134), prepared by Alexander Kyei, [Washington,


France:

The DIS of France was established in 1980 and revised in 1995. It is an unfunded scheme

in which the banks contribute to the fund on demand. There are separate schemes for

commercial banks, and for mutual savings and cooperative banks. The system is privately

administered and jointly funded. Debt securities insured by institutions, deposits of the

central government, insiders, affiliated companies and money launderer are excluded

from coverage.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,


Gabon:

The DIS in Gabon was established in 1999. Gabon is one of the 6 African countries that

share a common central bank. These 6 countries also share the same features for their

DISs that were all established in 1999. The features are as follows: mandatory

membership, joint administration, a permanent fund in place, exclusion of deposits of

foreign currencies. The assessment bases for the premiums are deposits and non-

performing loans, and the premium rate is 0.15% of deposits plus 0.5% net non-




Germany: (Deposit Security Fund, Savings Bank Security Fund and Credit Cooperation Security Scheme,

German Bank Association Deposit Protection Fund Law)

The DISs in Germany was established in 1966. There are separate schemes for

commercial banks, savings institutions, giro institutions, and credit cooperatives. The

scheme for commercial banks, savings banks and credit cooperatives are privately

administered. (Information on giro institutions is not available). The coverage limit for

commercial banks is 90% of 20,000 ECU. Rather than guaranteeing individual deposits,

private schemes for savings banks and credit cooperatives guarantee the solvency of the

institutions as a whole. The premiums charged by the private schemes vary by scheme

from 0.004% to 0.1%.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Gibraltar:

The DISs in Gibraltar was established in 1998. It is jointly administered and privately

funded. There is no permanent fund in place. The banks made ex-post contribution to the

fund. Banks pay administrative expenses on a regular basis.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,


Greece:

The DIS in Greece was established in 1995. It is administered jointly. The board has

eight members; three members from the Bank of Greece, five members from the

Hellenic Bank Association with a participant from the Ministry of Finance. If the funds

resources are not sufficient to meet the depositors’ claims, members may be called upon

to pay an additional contribution that can not exceed 300% of the last annual

contribution. The premiums paid by the members are determined to the following

brackets: 0.5 million GRD – 1.25 %, 51-250 million GRD – 1.20 %, 251-750 million

GRD – 1.175 %, 751-1750 million GRD – 0.205 %, 1751 million GRD and above—

0.025 %. Inter-bank, insider, illegal and central government deposits are not covered.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Hungary: (National Deposit Insurance Fund, Act on National Deposit Insurance Fund)

The DIS of Hungary was established in 1993. The scheme is administered jointly.

Members of the board of directors are, the president of the national bank of Hungary, the

administrative secretary of the state of the ministry of finance, the president of

inspections, two persons delegated by the interest-representing organizations of financial

institutions, the managing director of the DIF. Deposits of government, insiders,

professional investors, money laundereres, and other banks are excluded from coverage.

The government will guarantee fund borrowing from the central bank or private markets

if requested.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,


D.C.]; International Monetary Fund, Monetary and Exchange Affairs Dept., iii, 43 p., December 1995• Act on National Deposit Insurance Fund – Ministry of Finance, Hungary

Iceland: (Deposit Insurance Fund for Savings Banks; Deposit Insurance Fund for Commercial Banks,

Acts 86 and 87/1985)

The DIS of Iceland was established in 1985. There are separate schemes for commercial

banks and savings banks which are monitored by the supervisory agency. The fund for

the banks has a member of the government on its board. Even though the coverage in

principle is full we consider the system as having a co-insurance mechanism due to the

fact that above the minimum coverage limit of 20000 ECU, the actual compensation of

depositors is determined according to the resources of the fund. There is no public

support in the funding of the scheme.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



India: (Deposit Insurance and Credit Guarantee Corporation (DICGC), DICGC Act, 1961)

The DIS in India was established in 1962 following two bank failures in 1961. Initially

the system covered exclusively the commercial banks. In 1968 cooperative bank with a

minimum size operating in states having pertinent legislation was included in the system.

In 1975 coverage was extended to rural banks as well. Initially the coverage limits have

been changed in time as follows: initially Rs 1,500; Rs 5,000 in 1968; Rs10,000 in 1970;

Rs 20,000 in 1976; Rs 30,000 in 1980, and Rs 100,000since 1 May 1993.The system is

administered officially. Certificates of deposits, government, inter-bank, and illegal

deposits are not covered.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,




Ireland: (Deposit Protection Account (Central Bank), Central Bank Act, 1989)

The Irish DIS was established in 1989. The system is administered officially. Public

funding may be available through central bank and government support with

parliamentary approval. Initially 80% of the first 5000 pounds, 70% of he next 5000

pounds, and 50% of the next 5000 pounds was covered. In July 1995 the coverage limit

was set at 15000 ECU. Currently it is at 90% of 20000 ECU. The system does not extend

coverage to certificates of deposits, deposits of major owners and senior managers, and

money laundereres.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,

[Washington, D.C.]; Working Paper of the International Monetary Fund, Monetary and Exchange Affairs Dept., April 1999.• Bank of Finland Bulletin; “Reform of the Finnish deposit guarantee scheme”; Valori, Veli-Pekka; Vesala, Jukka; March 1998,

Vol. 72, No:3• Institute of International Bankers - Global Survey 1996• “Deposit Protection Arrangement: A Survey”, (IMF Working Paper; WP/90/134), prepared by Alexander Kyei, [Washington,


Italy: (Inter-bank Deposit Protection Fund)

The DIS in Italy was established in 1987. There are separate systems for banks and

cooperative institutions. Even though the scheme is privately run we consider it to be

jointly administered, due to the fact that all decisions must be approved by the central

bank. Criminal, government, insider, inter-bank and bearer deposits are not covered. The

bank of Italy can make low-interest rate loans to facilitate a large pay-out.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Jamaica:

The DIS system in Jamaica was established in 1998. It is administered and funded jointly.

The fund can borrow from the markets or the government.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,


Japan: (Deposit Insurance Corporation (DIC), Deposit Insurance Law)

There are two separate DISs in Japan; one for commercial and shinkin banks, credit

cooperatives and labor and credit associations, and an other for agricultural and fishery

cooperatives. The first scheme covers demand and time deposits in domestic currency.

The deposits will be covered in full until March 2001. Before 1997, the coverage limit

was set at 10 million Yens. Between 1996 and 2000, banks was required to pay a special

premium of 0.0036% in addition to their regular rate of 0.0048%. As a result of an

amendment to the Deposit Insurance Law in February 1998, the government allocated 17

trillion yens to a special account in the DIC. Government and central bank provided

initial capital. The fund can borrow from the central bank, and the government can

guarantee the DIC’s debt.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H.

Garcia, [Washington, D.C.]; Working Paper of the International Monetary Fund, Monetary and Exchange Affairs Dept., April1999.

• "Japan: Stimulation package", Oxford Analytica Brief; December 1997, Anonymous• “Deposit Protection Arrangement: A Survey”, (IMF Working Paper; WP/90/134), prepared by Alexander Kyei, [Washington,


Kenya: (Deposit Protection Fund Board, Banking Act No. 17, 1985)

The DIS in Kenya was established in 1985 following four bank failures. The scheme is

administered officially and funded jointly. The fund can borrow from the central bank.

The board is chaired by the governor of the central bank. The Treasury is represented by

a permanent secretary.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Korea: (Korea Deposit Insurance Corporation, Bank Deposit Insurance Act 1995, Law no. 5042, the

BDIA)

The DIS in Korea was established in 1996. The coverage limit was initially set at 20

million WON but since November 1997 the deposits are covered in full. Demand

deposits, savings and time deposits, installment deposits and mutual installment deposits,

and money in trust with a principal are protected by the scheme. The types of institutions

covered are domestic commercial banks, specialized banks, foreign bank branches and

development institutions. The KDIC is legally authorized to borrow from the government

or central bank with the approval of the ministry of finance.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,

[Washington, D.C.]; Working Paper of the International Monetary Fund, Monetary and Exchange Affairs Dept., April 1999.• “Korea introduces banks deposit insurance scheme”, International Financial Law Review , London, April 1997, Don Wong Ko.• “Deposit Protection Arrangement: A Survey”, (IMF Working Paper; WP/90/134), prepared by Alexander Kyei, [Washington,


Latvia: (Law on guarantees for deposits of natural persons)

The DIS in Latvia was established in 1998. It is administered officially. Insider deposits

and accounts in bank already declared bankrupt or insolvent, or in liquidation

proceedings are not covered. The initial coverage limit was 500 Lats. In accordance with

the EU standards this amount will be gradually increased up to Lats 13000 by the year

2008 according to the following schedule: 500 Lats, until Dec. 31, 1999; max 1000 Lats

until Dec. 31 2001; max 3000 Lats until Dec 31, 2003; max. 6000 Lats until Dec 31,

2005; max 9000 Lats until Dec 31,2007; max 13,000 Lats after Jan. 2008. The Bank of

Latvia and the government have made initial contributions to the fund.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,

[Washington, D.C.]; Working Paper of the International Monetary Fund, Monetary and Exchange Affairs Dept., April 1999.• Institute of International Bankers - Global Surveys 1997• Law on "Natural Person Deposit Guarantees"; Bank of Latvia- Unofficial translation.

Lebanon: (National Deposit Guarantee Company)

The DIS scheme in Lebanon was established in 1967. It is administered and funded

jointly. The government matches the premiums paid by the banks. The central bank

contributed half of the initial capital. The fund can borrow from the central bank.

Originally the scheme extends coverage only to deposits denominated in domestic

currency. However according to a transitionally law, deposits in foreign currencies had

also been covered from 1991 until the end of year 1998.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Lithuania: (Deposit Insurance Law, December 1995)

The DIS in Lithuania was established in 1996 based on a law that was voted in the

parliament in December 1995. The It is administered officially. Anonymous, illegal and

insider deposits and interests are not covered by the scheme. The government provided

initial capital and will cover any shortfall.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,

[Washington, D.C.]; Working Paper of the International Monetary Fund, Monetary and Exchange Affairs Dept., April 1999.• “Financial Sector Reform and Banking and Banking Crises in the Baltic Countries”, Prepared by Marta de Castello Brance,

Alfred Kammer, and Efiie Psalida, December 1996, Working Paper of the International Monetary Fund.

Luxembourg: (Deposit Guarantee Association)

The scheme was established in 1989. It is privately administered. There is no permanent

fund in place. Banks make ex-post contributions when needed. The coverage limit of

500000 Ls was raised to 90% of 15000 in July 1995. Since January 2000 it is set at 90%

of 20000 ECU. Branches of foreign banks are members of the system. If a foreign bank is

organized under the law of an other EU member state, it does not have to participate in

the system, but the coverage amount should be equal to that is allowed in the

Luxembourg system.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H.

Garcia, [Washington, D.C.]; Working Paper of the International Monetary Fund, Monetary and Exchange Affairs Dept., April1999.

• Institute of International Bankers - Global Survey 1997• “Deposit Protection Arrangement: A Survey”, (IMF Working Paper; WP/90/134), prepared by Alexander Kyei, [Washington,


Macedonia:

The scheme in Macedonia was established in 1996. Membership to the system is not

mandatory. The scheme is administered and funded jointly. The fund can borrow from

the central bank when necessary. Coverage is extended to current accounts and savings

deposits of natural persons that are denominated in domestic and foreign currencies.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,


Marshall Islands: (Federal Deposit Insurance Corporation (FDIC), Banking Act)

The scheme is Marshall Islands was established in 1975. Membership to the system is

voluntary. The system is funded by the contributions of the members only. It is

administered officially. The coverage limit is set at US$ 100,000.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Mexico: (Bank Savings Protection Fund, Credit Institutions Law)

The scheme in Mexico was established in 1986. It is administered officially. The

insurance agency is not obligated to guarantee deposits. Every year the agency announces

the instruments that will be covered by the scheme. In its 1997 announcement, the agency

stated that all liabilities of commercial banks except subordinated debt was to be covered.

Illicit transactions, inter-bank credits and obligation of intermediaries that are part of the

banks’ financial groups do not receive protection.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Micronesia: (Federal Deposit Insurance Corporation (FDIC), Banking Act)

The scheme is Micronesia was established in 1963. It is administered officially.

Membership to the system is voluntary. The coverage limit is set at US$ 100,000. The

fund has borrowed from the central bank and the ministry of finance.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Netherlands: (Collective Guarantee Scheme)

The scheme in Netherlands was established in 1979. There is no permanently maintained

fund. The banks make ex-post contributions when needed. Ex-post assessments are made

case-by-case based on several items of data reported to the central bank. Assessed bank’s

portfolio is compared to the portfolio of the failed bank. The amount of contributions are

determined after consultation with the bankers committee. The central bank provides

interest-free bridge financing. Deposits of large corporations, other banks, insurance

companies and insiders are not covered. Deposits of small enterprises and small

foundations along with the deposits of households are protected. Covered type of

accounts are current and savings accounts, and bank-registered debt instruments.

Deposits at branches of foreign banks established in other EU states are not covered.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,

[Washington, D.C.]; Working Paper of the International Monetary Fund, Monetary and Exchange Affairs Dept., April 1999.• Institute of International Bankers - Global Survey 1996• “Deposit Protection Arrangement: A Survey”, (IMF Working Paper; WP/90/134), prepared by Alexander Kyei, [Washington,


Nigeria: (Nigerian Deposit Insurance Corporation (NDIC), NDIC Decree No. 22)

The scheme in Nigeria was established in 1998 by the military government. The federal

government made an initial contribution to the fund and it can extend loans. 40 % of the

corporation’s equity is owned by the Federal Ministry of Finance and Economic

Development Inc., and the remaining 60% is held by the Central Bank of Nigeria. Both

the Central Bank and the Ministry of Finance are represented in the board which is

chaired by the governor of the central bank. All categories of traditional deposits are

covered except insider deposits, and deposits that serve as collateral for loans.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,


D.C.]; International Monetary Fund, Monetary and Exchange Affairs Dept., iii, 43 p., December 1995• “Deposit Insurance in Nigeria : A Critical Appraisal “ A.A. Alawode, Nigerial Financial Review s:5 no 4 1992• “Deposit Insurance in Developing Countries”, Talley, Samuel H and Mas, Ignacio, Working Paper of Country Economics


Norway: (Deposit Guarantee Fund)

The scheme in Norway was established in 1961. There are separate funds for commercial

banks and savings banks. Both of these funds are privately administered and jointly

funded. The government and central bank have borne losses in the past. There are seven

members on the boards of the funds. One of the members is from the central bank, and

the other is from the Banking and Securities Commission. Deposits of other banks, and

deposits of companies in the same group with the depository bank are excluded.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Oman:

The scheme in Oman was established in 1995. It is officially administered and jointly

funded. The central bank matches half of the member banks’ premium contributions. The

fund can borrow from the government, central bank and the member banks. Deposits of

significant shareholders, directors and senior managers, illegal deposits and the deposit of

auditors, parent, subsidiary and affiliated companies are excluded• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,


Peru: (Deposit Insurance Fund, Banking Law 1991)

The scheme was established in 1992. It is jointly administered and funded. The central

bank and the treasury have made initial contributions. The fund may borrow from the

treasury. All types of deposits, except bearer certificates for natural persons and non-

profit organizations are covered. The premium is computed to the maximum amount

insured and applies only to deposit of individuals and non-profit institutions. Banks pay

0.65 percent of total deposits plus 0.2 percent for each higher risk category.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Philippines: (Philippine Deposit Insurance Corporation (PDIC), Republic Act 3591/7800)

The scheme in Philippines was established in 1963. It is officially administered and

jointly funded. The government provided initial capital. The central bank has made loans

and borne losses. The government and the central bank are represented on the board.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,




Poland: (Banking Guarantee Fund, Law on Banking Guarantee Fund, 1994)

The Polish deposit guarantee scheme was established in 1995. It is officially administered

and jointly funded. The Bank of Poland and the government contributed initial capital. It

excludes the deposits of a bank’s significant stockholders, directors, or senior managers,

the deposits of the treasury, investment firms, or insurance companies. The treasury also

insures some housing savings deposits.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Portugal: (Deposit Guarantee Fund)

The scheme in Portugal was established in 1992 and was revised in 1995. It is officially

administered and jointly funded. The Bank of Portugal provided initial capital to the

fund. In 1999 the coverage for agricultural credit cooperatives has been changed to be

equivalent to the coverage for commercial banks. The scheme extends coverage to

demand, time and foreign currency deposits, but not to those of insiders or criminals,

financial institutions or central and local governments.• Institute of International Bankers - Global Survey 1999• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Republic of Congo:

The DIS in Republic of Congo was established in 1999. Republic of Congo is one of the

6 African countries that share a common central bank. These 6 countries also share the

same features for their DISs that were all established in 1999. The features are as follows:







Romania:

The Romanian scheme was established in 1996. It is jointly administered and funded.

The fund can borrow from the state, the central bank and other resources. The

government can guarantee the debt. Coverage limit is adjusted annually for inflation.

Each Romanian bank pays an initial contribution equivalent to the 1% of its subscribed

capital of the domestic banks. Foreign bank branches pay an initial contribution

equivalent to 1% of the subscribed bank capital of the minimum capital provided by a

Romanian bank. Premiums range between 0.3 % and 0.6 % of a natural person’s

deposits. They are calculated according to a formula that includes measures of solvency,

profitability, liquidity, loan equity and risk exposure.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,

[Washington, D.C.]; Working Paper of the International Monetary Fund, Monetary and Exchange Affairs Dept., April 1999.• Institute of International Bankers - Global Survey 1997

Slovak Republic:

The scheme in Slovak Republic was established in 1996. It is joint administered and

funded. The central bank made an initial contribution and may make loans to the fund.

Anonymous deposits and deposits of owners, directors and senior managers are not

covered. Building societies premium rates are half of those of commercial banks.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,


Spain: (Deposit Guarantee Fund, Royal Decree Law 4 & 18)

Spain has separate deposit guarantee funds for its commercial banks, savings banks, and

credit cooperatives. Each fund is jointly administered by their management commissions

with eight members. Four members are from the Bank of Spain and the other four are

from the member institutions. Deposits of financial institutions, public bodies, and

insiders are not covered. Deposits in financial institutions from other EU countries are

also covered. Membership to the Spanish scheme by branches of foreign banks –

including the EU banks – is voluntary. The central bank can make limited loans to the

fund.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,

[Washington, D.C.]; Working Paper of the International Monetary Fund, Monetary and Exchange Affairs Dept., April 1999.• Institute of International Bankers - Global Survey 1997• “Deposit Protection Arrangement: A Survey”, (IMF Working Paper; WP/90/134), prepared by Alexander Kyei, [Washington,


Sri Lanka:

The scheme in Sri Lanka was established in 1987. It is officially administered and jointly

funded. The central bank provided initial capital and can advance funds. Membership to

the scheme is voluntary. Deposits in foreign currencies are not covered. Deposits of the

government, public corporations, and other banks are also excluded from coverage.


Sweden:

The scheme in Sweden was established in January 1996 based on the EU directive. In

1992 Sweden introduced a temporary guarantee of all bank liabilities in 1992. This

temporary guarantee mechanism was abolished in July 1996. The new system is officially

administered and jointly funded. The government has borne losses in the past.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,

[Washington, D.C.]; Working Paper of the International Monetary Fund, Monetary and Exchange Affairs Dept., April 1999.• Institute of International Bankers - Global Survey 1997

Switzerland: (Deposit Guarantee Scheme)

The deposit guarantee scheme in Switzerland was established in 1984. It is privately

administered. The scheme is funded exclusively by the members. There is no permanent

fund in place. Banks make ex-post contributions when needed. Membership to the

scheme is voluntary.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Taiwan: (Central Deposit Insurance Corporation, Deposit Insurance Act, 1985)

The DIS in Taiwan was established in 1985. It is officially administered and jointly

funded. Membership to the system is voluntary.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Tanzania: (Deposit Insurance Fund (DIF). Financial Institutions Act, 1991)

The fund in Tanzania was established in 1994. It is privately administered and jointly

funded. The government provided initial capital. The fund can borrow from the central

bank. Foreign currency and inter-bank deposits are not covered.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Trinidad & Tobago: (Deposit Insurance Corporation, Financial Institutions Act 1986)

The scheme in Trinidad & Tobago was established in 1986. It is officially administered

and jointly funded. The fund can borrow from the central bank. The covered deposit

types are demand, savings, and time deposits.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Turkey: (Turkish Deposit Insurance Fund)

The fund in Turkey was established in 1983. It is officially administered and jointly

funded. When the resources are insufficient the fund may borrow from the central bank.

Initially coverage was extended to deposits and CDs in Turkish Liras, and foreign

currency denominated savings accounts of real persons domiciled in Turkey. In the wake

of the crises in 1994 all deposits have been brought under coverage. Also the coverage

limit of 150 million TLs was replaced with full coverage for an indefinite period.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,

[Washington, D.C.]; Working Paper of the International Monetary Fund, Monetary and Exchange Affairs Dept., April 1999.• Institute of International Bankers - Global Survey 1996, 1995• “Law on Deposit Insurance Fund”, Central Bank of Turkey- Unofficial Translation• “Deposit Protection Arrangement: A Survey”, (IMF Working Paper; WP/90/134), prepared by Alexander Kyei, [Washington,


Uganda: (Deposit Insurance Fund, Financial Institutions Act, 1993)

The fund in Uganda was established in 1994. It is officially administered and jointly

funded. Foreign currency and inter-bank deposits are not covered.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Ukraine:

The deposit guarantee scheme in Ukraine was established in 1998. It is officially

administered and jointly funded. The government has provided initial capital and will

lend when necessary. Deposits of insiders and their families, as well as inter-bank

deposits are excluded.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,


United Kingdom: (Deposit Protection Fund, Banking Act of 1979 and 1987)

The fund in the UK was established in 1982. It is administered officially and funded

privately. The central bank made loans in the past but there is now no public funding for

the DIS. There is no permanent fund in place. Banks make ex-post contributions when

needed. Deposits of financial institutions are not covered by the system.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



United States: (Federal Deposit Insurance Corporation (FDIC), Federal Reserve Act)

The US deposit insurance system was established in 1934. It is officially administered

and jointly funded. The government provided initial capital, borne losses of the savings &

loan associations, and can lend to BIF and SAIF. Membership is compulsory for

nationally chartered and for almost all state-chartered banks and thrifts. Deposits booked

off-shore are not covered. Initially the coverage limit was set at $5000. The coverage

limit has been increased a several times as follows; $10,000 in 1950, $15,000 in 1966,

$20,000 in 1969, $40,000 in 1974, and finally $100,000 in 1980.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,

[Washington, D.C.]; Working Paper of the International Monetary Fund, Monetary and Exchange Affairs Dept., April 1999.• Annual Report 1996 – Federal Deposit Insurance Corporation - USA• “Deposit Protection Arrangement: A Survey”, (IMF Working Paper; WP/90/134), prepared by Alexander Kyei, [Washington,


Venezuela: (FOGADE/BANAP, Charter of Deposit Guarantee and Bank Protection Fund)

The fund in Venezuela was established in 1985. It is officially administered and jointly

funded. Central bank and government have borne losses and have refinanced the DIS.

The board has seven members of which four are from the government, one from the

banks, one from the labor union, and one from the insurance agency’s employees. In

1994 the premiums were raised from 0.5% to 2.0 due to a substantial assistance to

troubled banks. The fund has selectively has made payments over the legally stated

limits.• “Deposit Insurance: A Survey of Actual and Best Practices”, (IMF working paper; WP/99/54), prepared by Gillian G. H. Garcia,



Deposit Insurance Around the World: A Data Base

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