Determinants of Deposit-Insurance Adoption and Design

Demirguc-Kunt: World Bank; Kane: Boston College and NBER; Laeven: IMF and CEPR. Corresponding author: Edward Kane, James F. Cleary Professor in Finance, Boston College, Fulton Hall 330A, Chestnut Hill, MA 02467, e-mail: edward.kane@bc.edu, phone: (617) 552-3986, fax: (617) 552-0431. We are grateful to George Pennacchi (the Editor), two anonymous referees, Thorsten Beck, Stijn Claessens, Mark Flannery, Patrick Honohan, Ozer Karagedikli, and Loretta Mester for very useful comments. For additional suggestions, we also want to thank seminar participants at the Reserve Bank of New Zealand, Victoria University of Wellington, the FDIC Center for Financial Research's Fifth Annual Banking Research Conference, and the 2005 AFA meetings in Philadelphia. We thank Baybars Karacaovali and Guillermo Noguera for helping to construct the new database and for providing excellent research assistance, and we thank numerous colleagues at the World Bank for providing input for the deposit insurance database. This paper's findings, interpretations, and conclusions are entirely those of the authors and do not represent the views of the World Bank, the International Monetary Fund, their Executive Directors, or the countries they represent. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.

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