Deposit Insurance And Financial Development
- Topics:
- Financial Regulations,
- Insurance
- Source:
- World Bank Group
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Overview: The authors examine the effect of different design features of deposit insurance, on long-run financial development, defined to include the level of financial activity, the stability of the banking sector, and the quality of resource allocation. Their empirical analysis is guided by recent theories of banking regulation that employ an agency framework. The authors examine the effect of deposit insurance on the size, and volatility of the financial sector, in a sample of fifty-eight countries. They find that generous deposit insurance leads to financial instability in lax regulatory environments. Know more on deposit insurance, financial development; banking systems; financial stability; Allocation of resources; banking regulatory framework and economic growth.
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Format: PDF | Size: 4,730KB | Date: Sep 2001 | Pages: 66





