General Guidance to Promote Effective Interrelationships among Financial Safety Net Participants
In designing deposit insurance systems, policymakers need to address the deposit insurer's relationships and coordination with other safety net participants. A need for close coordination exits in any institutional setting and information sharing. When more than one organization is responsible for the smooth functioning of the safety net, the functions assigned to different organizations raise issues related to the allocation of powers and responsibilities, information sharing, and the coordination of actions. The paper describes key steps to be taken to ensure such effective relationships.