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Deposit Insurance During EU Accession

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Abstract

The paper presents a brief review of the systems of deposit insurance in accession countries, comparing their level of harmonization with the perspective of their EU integration. Studying the different practices of deposit insurance in the context of developing financial safety nets in future Europe we have found that: (i) there is overinsurance of deposits in accession countries, and (ii) that this could lead to increasing moral hazard, incentives deformation and increasing costs of banking intermediation in the whole euro area.

Suggested Citation

  • Nikolay Nenovsky & Kalina Dimitrova, 2003. "Deposit Insurance During EU Accession," William Davidson Institute Working Papers Series 2003-617, William Davidson Institute at the University of Michigan.
    • Handle: RePEc:wdi:papers:2003-617
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    File URL: http://deepblue.lib.umich.edu/bitstream/2027.42/40003/3/wp617.pdf
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    References listed on IDEAS

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    1. Asli Demirgüç-Kunt & Edward J. Kane, 2004. "Deposit Insurance: Handle with Care," Central Banking, Analysis, and Economic Policies Book Series, in: Luis Antonio Ahumada & J. Rodrigo Fuentes & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Se (ed.),Banking Market Structure and Monetary Policy, edition 1, volume 7, chapter 12, pages 345-358, Central Bank of Chile.
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    Cited by:

    1. Karligash Kenjegalieva & Richard Simper & Thomas Weyman-Jones, 2009. "Efficiency of transition banks: inter-country banking industry trends," Applied Financial Economics, Taylor & Francis Journals, vol. 19(19), pages 1531-1546.
    2. Djurdjica Ognjenovic, 2006. "Basic Principles of Financial Planning in Ex-ante Deposit Insurance Schemes," Financial Theory and Practice, Institute of Public Finance, vol. 30(4), pages 369-380.
    3. Valeriya Dinger & J‹Rgen Von Hagen, 2009. "Does Interbank Borrowing Reduce Bank Risk?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 41(2-3), pages 491-506, March.
    4. Eisenbeis, Robert A. & Kaufman, George G., 2008. "Cross-border banking and financial stability in the EU," Journal of Financial Stability, Elsevier, vol. 4(3), pages 168-204, September.
    5. Demirguc-Kunt, Asli & Kane, Edward J. & Laeven, Luc, 2006. "Deposit insurance design and implementation : policy lessons from research and practice," Policy Research Working Paper Series 3969, The World Bank.

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    More about this item

    Keywords

    deposits insurance; financial regulation; accession countries;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies

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