Lessons Learned from Introducing Deposit Insurance Systems

1
Lessons Learnedfrom Introducing Deposit
Insurance Systems
J. R. LaBrosseSecretary General IADI
23 June 2004
2
Presentation Outline

• Some Personal Reflections

3
Banks will fail

• Who is responsible?
• Capacity to deal with failures

4
Explicit Deposit Insurance Systems Work Best
5
Policy papers help align objectives with
expectations
6
Moral hazard resides in all parts of the
financial safety net
7
Systemic issues mean different things to
different people when dealing with failures
8
Interrelationship issues need constant attention
9
Information sharing is essential
10

• Understand transitional issues
• Assess and promote public awareness

11

• Developing and establishing an effective deposit
  insurance system
• Takes longer than you think
• Is complex
• Always costs more than expected

12

• Beware of instant experts
• Make sure YOU control the process

13
There is always value in conducting post-mortems
to identify lessons learned
14
Main conclusions
15
Lessons Learnedfrom Introducing Deposit
Insurance Systems