Establishment of a formal deposit protection scheme will be beneficial for Pakistan as it will build up sizable funds, through premium payments from banks that can be used to provide immediate liquidity to small depositors in case of a bank failure
, said the SBP.
The series of bank failures
has led several-- including Parliamentarians that have demanded an investigation--to wonder openly if past CBK officials such as former Governor Njuguna Ndung'u were to blame.
Many observers are looking to the regulatory aftermath of the savings and loan crisis of the late 1980s for clues as to how bank failures
will ultimately be resolved.
Georgia leads the country in bank failures
, with 12 year-to-date and 64 since the cycle started in 2007.
"So our existing streambank models were actually missing key mechanisms in bank failure
For purposes of this study, a bank failure
occurs when a bank is forced by regulators either to close or to merge with another banking institution.
Wilson and Fox confirmed for the first time that a stable streambank can quickly become unstable when seep age erosion is added to the mix of factors that promote bank failure
. The probability of failure reached 100 percent when the degree of undercutting reached about 30 to 50 millimeters (1 to 2 inches) into the bank face.
Wheeler said the move was made after an analysis of banks' balance sheets and banks' ability to ensure that public deposits can be recovered in the event of a bank failure
. In Oregon, 38 banks are qualified as depositories for public funds.
Officials hope it will guard against a repeat of the global economic crisis, triggered by a wave of bank failures
With some $300 billion of assets and $189 billion of deposits when it was closed by the Office of Thrift Supervision, Washington Mutual Bank was by far the largest bank failure