ROLE OF DEPOSIT INSURANCE IN ORDER TO OVERCOME THE BANKING CRISIS

Abstract

Any economic and banking crisis in the world has generated a deep and long-term disorders system or nonsystem characters at the core of a certain economic and banking system. Generally looking, the periods of crisis are devastating in the short term for the general economic growth, financial stability and employment, but in the long run its effects are certainly positive and contribute to restoring the economic system on the basis of healthy and stable growth and development. The need for deposit insurance and reported as a consequence of the banking crisis in ancient XIX century and is a clear roots "concerns of the state" for small deponents and strengthen the awareness that these "small" are basically "steel pillar" of a financial system. This work is deeply meaningful and substantial critical review of the genesis and development of models of deposit insurance in the world with us, the positive effects of their action, and weaknesses and possible access to their restructuring in the direction of fulfilling the objectives and why they exist, and that the protection of the interests depositors, preserve confidence in the banking system and ensuring the financial stability of a country.