International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Jurisdiction Reaction to Adjust Deposit Insurance Coverage, 2008 Crisis Adjustments
Usama Adnan Fendi

This study aims at: providing empirical evidence for the variables affecting the level of adopted coverage limit in explicit partial coverage deposit insurance systems; comparing the actual and predicted coverage limits, before and after the recent crisis adjustments; comparing the deviations among the developed and developing countries. This paper uses simple and multiple regression analysis will be applied for the sample data collected from 71 countries adopting explicit partial coverage deposit insurance system. The results found that per capita GDP and the ratio of deposit to GDP in the country were the most significant variables in determining the coverage limit. The results also found that most of the countries were adopting lower coverage than suggested by the models for the period before the financial crisis and higher than it after the crisis. The deviations for the developing countries were extremely higher than the deviations for the developed countries.

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