Deposit insurance


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Deposit insurance

Deposit Insurance

A guarantee by some organization that funds in a bank deposit will be available to the account holder. That is, if the bank becomes insolvent, insured deposits are safe and depositors will be able to access them. Deposit insurance is made by a government-sponsored organization such as the FDIC. Deposit insurance exists in order to reduce pressures that might result in bank runs.
References in periodicals archive ?
New Delhi: Amid concerns being raised on bank deposits under the draft FRDI Bill, an SBI research report on Thursday said the proposed law is contemplating an increase in deposit insurance coverage from the current Rs 1 lakh.
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the proposal to introduce a Financial Resolution and Deposit Insurance Bill, 2017.
from doing business, state-run Philippine Deposit Insurance Corp.
The form of potentially misguided financial regulation that we focus on here is government-administered deposit insurance, managed in the United States by the Federal Deposit Insurance Corporation (FDIC).
Global Banking News-September 14, 2015--Germany not happy with eurozone deposit insurance plan
2268, respectively, to amend the charter of the Philippine Deposit Insurance Corporation (PDIC).
BANKING AND CREDIT NEWS-June 26, 2015-FDIC Proposal would revise deposit insurance assessment for small banks
PEKyN (CyHAN)- China is ready to launch a deposit insurance scheme, a central bank official said Friday.
The Nigeria Deposit Insurance Corporation (NDIC) has signed a Memorandum of Understanding (MOU) with the Bank Guarantee Fund (BGF) of Poland to promote capacity building.
Deposit insurance has been implemented in many countries to protect (either fully or in part) bank depositors from losses that can be caused by a bank's inability to meet its obligations.
Guaranteeing deposits through a system of government-administered deposit insurance removes the temptation to run on the bank and thereby precludes the need to ever use the deposit insurance.
However, a unique circumstance in the 1930s provides an insight into how a piece of the federal safety net--federal deposit insurance has altered the financial landscape.

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