search query: @indexterm Slovenia / total: 143
reference: 73 / 143
| Author: | Zajdela, A. |
| Title: | Deposit insurance scheme |
| Journal: | Slovenska ekonomska revija
1995 : VOL. 46:5, p. 48-59 |
| Index terms: | SLOVENIA BANKING BANKS BANK DEPOSITS INSURANCE |
| Language: | slv |
| Abstract: | The need for introduction of a deposit insurance scheme needs to be dealt with also from the point of view of comparative advantage it brings about in the market of bank services.The depositors thereby obtain a clear picture of which deposits and to what extent, and with which market makers are they insured.The banks and savings institutions, traditionally considered as safe, are included in the deposit insurance scheme on a compulsory basis and have a comparative advantage against other financial intermediaries; likewise , "safer" banks and savings banks have a comparative advantage against "not so safe" ones.The "safer" banks are considered as such because, in addition to compulsory deposit insurance schemes, they make use of and introduce all additional safety mechanisms and schemes possible in order to gain the confidence of depositors.The latter, together with the "safer" banks, are consequently creators of the structure of the financial system. Competition therefore needs to be considered as primary basis of stability of a financial system, and rules and regulations of the relevant authorities, especially those of the central bank, only as secondary. |
SCIMA