Research on Risk-Based Common European Union Deposit Insurance System in Lithuanian Banks

2017 ◽  
pp. 105-118
Author(s):  
Ausrine Lakstutiene ◽  
Aida Barkauskaite
Keyword(s):  
European Union ◽  
Deposit Insurance ◽  
Insurance System ◽  
Deposit Insurance System

scholarly journals Measurement of Systemic Risk in a Common European Union Risk-Based Deposit Insurance System: Formal Necessity or Value-Adding Process?

Risks ◽  
2018 ◽  
Vol 6 (4) ◽  
pp. 137 ◽  
Author(s):  
Aida Barkauskaite ◽  
Ausrine Lakstutiene ◽  
Justyna Witkowska
Keyword(s):  
European Union ◽  
Systemic Risk ◽  
Deposit Insurance ◽  
Current System ◽  
Banking System ◽  
Risk Indicators ◽  
Insurance Fund ◽  
Insurance System ◽  
Deposit Insurance System ◽  
The Stability

Scientific discussions have emphasized that the main problem with the current deposit insurance system is that the current system does not evaluate the risks that banks assume to calculate the deposit insurance premiums in many countries of the European Union (E.U.). Thus, the prevailing system does not safeguard a sufficient level of stability in the banking system. Scientific studies show that the deposit insurance system should consider not only the risk indicators for individual banks, but it must also consider the systemic risk of banks that affects the stability of the banking system. Hence, the question arises as to whether measurements of systemic risk in a common E.U. risk-based deposit insurance system are a formal necessity or if they are a value-adding process. Expanding the discussion of scientists, this article analyzes how contributions to insurance funds would change the banks of Lithuania following the introduction of the E.U.’s overall risk-based deposit insurance system and after taking into consideration the additional systemic risk. The research results that were obtained provide evidence that the introduction of a risk-based deposit insurance system would redistribute payments to the deposit insurance fund between banks operating in Lithuania, and, thereby, would contribute to a reduction in the negative effects of the deposit insurance system and would improve the stability in the financial system.

scholarly journals Sources Of Non-Performing Loans In Turkish Banking System

2011 ◽  
Vol 5 (10) ◽  
Author(s):  
Gokhan Karabulut ◽  
Mehmet Huseyin Bilgin
Keyword(s):  
Financial Stability ◽  
Deposit Insurance ◽  
Developing Economies ◽  
Banking System ◽  
Bank Loans ◽  
System Stability ◽  
Insurance System ◽  
Turkish Government ◽  
Deposit Insurance System ◽  
The Impact

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-family: Times New Roman; font-size: x-small;">The purpose of this paper is to examine the impact of the unlimited deposit insurance on non-performing loans and market discipline. Deposit insurance program play a crucial role in achieving financial stability. Governments in many advanced and developing economies established deposit insurance schemes for reducing the risk of systemic failure of banks. Deposit insurance has a beneficial effect of reducing the probability of a bank run.<span style="mso-spacerun: yes;">&nbsp; </span>However deposit insurance systems have its own set of problems. Deposit insurance systems create moral hazard incentives that encourage banks to take excessive risk. Turkey established an explicit deposit insurance system in 1960. Until 1994, the coverage determined by a flat rate but in that date, Turkey experienced a major economic crisis. In April 1994, Turkish government started to apply an unlimited deposit insurance scheme to restore banking system stability. Unlimited deposit insurance caused a remarkable increase at non-performing loans. This paper empirically estimates the impact of unlimited deposit insurance system on non-performing bank loans (NPLs) and analyses the other potential sources of NPLs. </span></p>

The Payouts Choice for Deposit Insurance System

2019 ◽  
Vol 32 (5) ◽  
pp. 1404-1425
Author(s):  
Yiming Chang ◽  
Shangmei Zhao ◽  
Fei Hu
Keyword(s):  
Deposit Insurance ◽  
Insurance System ◽  
Deposit Insurance System

Information Disclosure and Bank Risk-Taking under a Partially Implicit Deposit Insurance System: Evidence from China

2015 ◽  
Vol 48 (2) ◽  
pp. 163-176 ◽  
Author(s):  
Zongrun Wang ◽  
Jiangyan Chen ◽  
Yuanyuan Wan ◽  
Yanbo Jin ◽  
Jared Anthony Mazzanti
Keyword(s):  
Risk Taking ◽  
Information Disclosure ◽  
Deposit Insurance ◽  
Bank Risk ◽  
Insurance System ◽  
Deposit Insurance System
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