Chapter 1: Introduction -- Part I: The management of banking crises in Italy: old and new solutions in a framework of increasing complexity -- Chapter 2: The overall picture. System weaknesses and individual problems -- Chapter 3: The Tercas case: a watershed -- Chapter 4: The first application...

Deposit insurance is widely offered in a number of countries as part of a financial system safety net to promote stability. An unintended consequence of deposit insurance is the reduction in the incentive of depositors to monitor banks, which leads to excessive risk-taking. This paper examines...

Explicit deposit insurance tends to be detrimental to bank stability - the more so where bank interest rates are deregulated and the institutional environment is weak. - Based on evidence for 61 countries in 1980-97, Demirgüç-Kunt and Detragiache find that explicit deposit insurance tends to...