• Embed Doc
  • Copy Link
  • Readcast
  • Collections
  • CommentGo Back
Download
 
POLICYRESEARCH
WORKING
PAPER
28
71
Pricing
of
Deposit
Insurance
Luc Laeven
The
World
Bank
r
Financial Sector Strategy
and
Policy
Department
July
2002
 
POLICYRESEARCH
WORKING
PAPER
2871
Abstract
Laeven
aims
to
provide
guidelines
for
the pricing of
underpriced
in
many
countries
around
the
world,
deposit
insurance
in
different
countries.
He presents notably
in
several
developing countries.
More important,
several
methodologies
that
can be
used
to
set
his
estimates
suggest
that
many
countries
cannot
affordbenchmarks for
the pricing
level
of
deposit
insurance
in
a
deposit
insurance.
country,
and
quantifies
how
specific
designfeatures
Deposit
insurance
is
unlikely
to
be
a
viable
option
in
a
affect the cost
of
deposit
insurance.
country
with weak banks and
institutions.
The
author
The
author
makes
several
contributions
to
our
does
not
recommend
a
funded
deposit
insurancescheme,
understanding of what
drivesthe price
of
deposit
but
rather
he
argues
that
for countries
that
have
adopted
insurance.
For
example,
he
shows
how
risk
or
are
adopting deposit
insurance
and
have
decided
to
diversification and risk
differentiation
within
a
deposit pre-fund
it,
pricing it
as
accurately
as
possible
is
insurancesystem
can
reduce the priceof
deposit
important.
insurance.Laeven alsofinds
that
deposit
insurance
is
This
paper-a
product
of the Financial Sector Strategy
and
Policy
Department-is
part
of
a
larger
effort
in
the
departmentto
studythe
costs
and
benefits of
deposit
insurance. Copies
of
the paper
are available free
from
the World
Bank,
1818
H
Street NW, Washington,
DC
20433.
Please
contact
Rose
Vo,
room
MC9-624,
telephone
202-473-3722,
fax
202-522-
2031,
email
address
hvol@worldbank.org.
Policy
Research
Working
Papers
are also
posted
on
the
Web
at
http://econ.worldbank.org.
The
author
may be
contacted
at llaeven@worldbank.org.
July
2002.
(69
pages)
The
Policy
Research Working
Paper
Series
disseminates the findings
of
work in
progress
toencourage
the exchange
of
ideas
about
development
issues.
An
objective
of
he
series
is
to
get
the findings
out
quickly, even
if
he
presentations
are
less
than
fully polished.
The
paperscarrythe names
of
the
authors
and
should
be
cited
accordingly.
The
findings,
interpretations,
and
conclusions
expressed
inthis
paper
are entirely those
of
the authors.
They
do
not
necessarily represent the
view
of
the World
Bank,its
Executive Directors,
or
the
countries
hey
represent.
Produced
by
the Research
AdvisoryStaff
 
Pricingof
Deposit
Insurance
LucLaeven'
The
World
Bank,Llaeven(a)worldbank.org,Tel.
2024582939.
Theauthorwould
like
to
thank
ThorstenBeck,
JerryCaprio,
AsliDemirgui,-Kunt,
Oliver
Fratzscher,Tom
Glaessner,
Jim
Hanson,
Patrick
Honohan,
Yongbeom
Kim,
DanielaKlingebiel,GiovanniMajnoni,SoledadMartinezPeria,
LarryPromisel,
Olga
Sclovscaia,
and
seminar
participantsat
the
World
Bank
for
helpfuldiscussions
and
comments,
and Ying
Lin
for researchassistance.
of 00

Leave a Comment

You must be to leave a comment.
Submit
Characters: ...
You must be to leave a comment.
Submit
Characters: ...