The purpose of deposit insurance systems is to protect the rights of depositors and contribute in this way to the financial stability.
There are different mechanisms that contribute to the maintenance of financial stability of countries, financial assistance from the Central Bank supervision and regulation, intervention and the system of deposit guarantee.
Over time responsibilities and functions of the Deposit Guarantee System have changed and evolved according to experiences, lessons learned from other systems, expertise and legislative and executive changes occurred in each country.
Other objectives that are usually pursued are concerned with finding solutions upon the fall of financial institutions; managing assets and liabilities emerging after the crisis; providing incentive schemes for a better management of risks in financial institutions; and covering the costs arising from bankruptcies and the crisis with the assistance of the entire financial system
Considering this purposes, the functions of the institution in charge of managing the deposit insurance may vary. There may be simple payment windows of the insured amounts, or even systems with wider functions that include the evaluation of systemic risks, operative risks, bankruptcy resolution of financial institutions, and even in some cases the institution acts as banking regulator and supervisor.
According to IADI’s investigations (International Association of Deposit Insurers) between 1974 and 2008, 99 countries had established some type of explicit Deposit Insurance System.
At the beginning of 2010, there were 106 countries with explicit deposit insurance schemes, and the possibility of applying such schemes in other 19 countries was being studied.
For an updated list of DIS, check: http://iadi.org/