This book provides a comprehensive overview of funding arrangements for
explicit deposit insurance schemes. Responding to international
guidelines and best practice, it discusses policy decisions and
operational challenges which deposit insurers face in the financial
management of ex-ante deposit insurance funds. Numerous examples are
provided, and solutions offered on sources and uses of funds, focusing
on target and optimal funding.
Coverage includes:
- the role that modern deposit insurance schemes play in ensuring
financial stability
- how to design the main deposit insurance features in order to maximize
compliance with international standards
- the different types of funding and financial planning for deposit
insurance
- methods for setting the target fund size level
- optimal deposit insurance funding
- challenges faced by the European Union members following new deposit
insurance and bank resolution directives.
The book concludes by providing a comprehensive overview of funding
issues and recommendations for deposit insurance schemes in the European
Union.