Zoli, Edda; Xie, Danyang; Vaez-Zadeh, Reza - International Monetary Fund (IMF) - 2002
This paper argues that an optimal deposit insurance scheme would allow the level of insurance coverage to be determined … by the market. Based on this principle, the paper proposes an insurance scheme that minimizes distortions and embodies … fairness and credibility, two essential characteristics of a viable and effective deposit insurance scheme. Using a simple …