Thematic Review on Deposit Insurance Systems
The global financial crisis provided many lessons for FSB member jurisdictions. The effectiveness of their deposit insurance systems (DISs) in protecting depositors and maintaining financial stability was tested, and several reforms were subsequently undertaken to enhance these systems where appropriate. The speedy adoption by many jurisdictions of extraordinary arrangements to enhance depositors' confidence signals the importance and necessity of having an effective DIS. Some of the reforms reflect a change in the prevailing views about the role of deposit insurance in the overall safety net. Before the crisis, the functioning of DISs differed significantly across FSB members and the views about appropriate design features were rather general and non-prescriptive. The crisis resulted in greater convergence in practices across jurisdictions and an emerging consensus about appropriate design features. The mandates of deposit insurers also evolved, with more of them assuming responsibilities beyond a paybox function to include involvement in the resolution process.