Abstract

As in many countries the financial crisis caused for depositors has created deposit insurance, there are also efforts in this regard in Iran, but still have not led to any practical result.In this paper, we try to state the history of deposit insurance, its definition and identification, and the necessity of its creation, and then introduce the FDIC and FSLIC.

In the next section of the paper, disadvantages and risks of the creation of deposit insurance will be discussed and two types of risks resulted from financial environment and behaviors created by the depositors, banks, regulators and central banks are discussed.

In the third part of the paper, the qualitative and quantitative methods for risk management of depository banks that increase rules related to the bank owners, depositors and policy makers are examined.

In the fourth section of the paper, definition ofdiscount window and its relation with deposit insurance and difference of deposit insurance and other insurances will be explained and finally, the design of deposit insurance systems in Iran will be examined.

Keywords: Deposit Insurance, Behavioral Risk, Pricing.

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