TY  - JOUR
AU  - Demirguc-Kunt,Asli
AU  - Kane,Edward J.
AU  - Laeven,Luc
TI  - Determinants of Deposit-Insurance Adoption and Design
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12862
PY  - 2007
Y2  - January 2007
UR  - http://www.nber.org/papers/w12862
L1  - http://www.nber.org/papers/w12862.pdf
N1  - Author contact info:
Asli Demirguc-Kunt
World Bank
1818 H Street
Washington, DC  20433
E-Mail: ademirguckunt@worldbank.org

Edward J. Kane
2325 E Calle Los Altos
Tucson, AZ 85718
Tel: 520-299-5066
E-Mail: edward.kane@bc.edu

Luc Laeven
Senior Economist
International Monetary Fund
700 19th Avenue, NW
Washington, DC 20431
Tel: 202/623-9020
Fax: 202/623-4740
E-Mail: Llaeven@imf.org
AB  - This paper identifies factors that influence decisions about a country's financial safety net, using a comprehensive dataset covering 180 countries during the 1960-2003 period. Our analysis focuses on how private interest-group pressures, outside influences, and political-institutional factors affect deposit-insurance adoption and design. Controlling for macroeconomic shocks, quality of bank regulations, and institutional development, we find that both private and public interests, as well as outside influences to emulate developed-country regulatory schemes, can explain the timing of adoption decisions and the rigor of loss-control arrangements. Controlling for other factors, political systems that facilitate intersectoral power sharing dispose a country toward design features that accommodate risk-shifting by banks.
ER  -