Semenog A., PhD in Economics, Associate Professor, Associate Professor of the Department of Finance, Banking and Insurance, Sumy State University, Sumy, Ukraine

ORCID ID: 0000-0003-3222-9574
e-mail: a.semenoh@uabs.sumdu.edu.ua

Tkachenko D., PhD student in Economics, Department of Finance, Banking and Insurance, Sumy State University, Sumy, Ukraine

e-mail: Dm.tka4enko@gmail.com

Comparative Analysis of Deposit Insurance Systems in the World

Introduction. The key to the development of the Ukrainian economy is to provide its subjects with enough financial resources, which can be realized by broad involvement of deposits of individuals and legal entities in the banking system. In this context, the need to build an effective deposit guarantee system becomes important, not only as a means of safeguarding the financial interests of depositors, but also as a mechanism to mitigate financial shocks and crises. For this purpose, it is important to develop scientific and methodological approaches to the analysis and assessment of the current state of development of the deposit guarantee system in Ukraine in the context of international experience trends and to develop the directions of its development.

Purpose. The purpose of the article is to analyze and compare existing types and models of deposit insurance systems in different countries of the world.

Results. In the article, based on the analysis of scientific achievements of foreign researchers, deposit insurance systems in different countries are analyzed. The characteristics of models of functioning of deposit guarantee systems are presented. It is determined that two major deposit insurance models have emerged. It is proved that in all countries deposit insurance systems guarantee banks, at the same time there are countries where money invested in credit unions, financial cooperatives, insurance companies or securities management companies are also guaranteed. It was found that countries differ significantly according to the level of deposit insurance coverage, with no close correlation between the coverage level and the economic development level of the country. In addition, the paper presents an analysis of financial products that are covered by insurance in different countries. The work also assesses the types and designs of deposit guarantee systems. It is revealed that there are quite different combinations of approaches regarding the construction and operation of deposit insurance systems. The analysis showed that the most common type of deposit insurance is the “pay-box plus” and the least common type is “risk minimization”. It is revealed that in most countries the deposit guarantee system is governed by the government, although the legal status of the deposit insurance institution is independent.

Conclusions. Consequently, irrespective of the country’s economic development and its location, the type and structure of the deposit insurance system, its mechanism of operation, the maximum amount of coverage and the list of financial products that are covered by insurance differ significantly. So, it requires a unique approach to integrate the world experience into the national practice of building a national deposit insurance system.

Keywords: deposit insurance system; payment box; payment box plus; deposit insurance institution; model of deposit insurance system.

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