Deposit Insurance

From Open Risk Manual


Deposit Insurance is a mechanism that aims to protect depositors of a Depository Institution (Bank), in full or in part, in case that institution fails for any reason (e.g. becomes insolvent)


In the case of bank failure the insurer (typically a public agency) refunds insured depositors up to the amount of the deposit insurance. Only financial products designated as deposits qualify, the precise list depends on markets and corresponding jurisdictions

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