Deposit Insurance
From Open Risk Manual
Definition
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)
Description
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
