The role of deposit insurance and the design features of deposit insurance systems
are undergoing important changes in light of the 2008/9 global crisis. Changes
were made in order to restore the public confidence in the banking system, stop
widespread bank runs during the crisis and increase the stability of the financial
system. The purpose of this paper is to present the changes in deposit insurance
around the world as a result of the financial crisis of 2008. Three main changes
will be observed: the raising of the maximum level of deposit insurance coverage,
the elimination of coinsurance and changes in the speed of depositor’s payout.
Effects of these changes will be analyzed, and special emphasis will be laid on the
deposit insurance system of the Republic of Macedonia.
The changes in deposit insurance can affect the moral hazard problem, the
premium assessment base and the potential financial commitment of the
deposit insurance institution. Changes in the deposit insurance regulations of
the Republic of Macedonia did not affect the premium assessment base, but the
potential financial obligation of the deposit insurance institution was increased.
Regarding the moral hazard problem mitigation, Deposit Insurance Fund - Skopje
should consider risk-based premium introduction.
