25,000; 50% of deposits over 25,000; total coverage not to exceed 100,000. Currently, the limits are tied to minimal wage (MW) which is at 100 rubles. Thus, the figures above re-expressed in terms of MW become 100% of deposits up to 20 MWs; 90% of deposits between 20 MWs and 250 MWs; 50% of deposits over 250 MWs; total coverage not to exceed 1000 MWs. The law allows both ex-ante and ex-post funding. ARCO provided the initial capital of Rb 3 billion. The Deposit Insurance Agency is planned to be constructed and take over the administration. The premiums are planned to be no more than 0.15%, and in emergency up to 0.3% which will go down to formed 0.05% once the fund reaches 5% of the insured deposit base.

_Sources_ : Agency for Restructuring Credit Organizations-Russia (2004), OECD (2004).

**Serbia and Montenegro.** ( _Agency for Deposit Insurance and Bank Rehabilitation, Bankruptcy and Liquidation, Serbia; Deposit Protection Law, Montenegro_ ) The deposit insurance system of Serbia came into force in 2001. The coverage limit is set at 5,000 dinars per depositor per bank which extends to foreign currency deposits as well. On the other hand, Deposit Protection Law was adopted on July 11<sup>th</sup> , 2004 by Montenegro which provide protection up to EUR 5,000 per depositor per bank and the Fund can increase this amount up to EUR 20,000 depending on its resources and the amount of protected deposits. _Sources_ : Bank Rehabilitation Agency-Serbia (2004), Own survey of deposit insurers.

**Slovak Republic.** ( _Deposit Protection Act, No. 118/1996 to 340/2003_ ) The scheme of Slovak Republic was established in March 1996 and was revised in 2001 in accordance with the EU directive 94/19/EC. The system is jointly administered and funded. The central bank made an initial contribution and may make loans to the fund. Anonymous deposits and deposits of owners, directors and senior managers are not covered. The premium rates for building societies are half of those of commercial banks. Membership is mandatory and premium rates range between 0.1% and 0.3%. Until 2002, the coverage limit for deposits was thirty times the average monthly salary of previous year as published by the National Statistical Office, whereas the rate with savings banks was sixty-fold. In 2002, the bank deposit limit was raised to forty times the average monthly salary. Finally, in 2003 the coverage limit was set at 90% of inaccessible deposits not to exceed EUR 20,000.

_Sources_ : Own survey of deposit insurers, Garcia (1999).

**Slovenia.** ( _Deposit Guarantee System, Banking Act_ ) The deposit guarantee scheme of Slovenia was introduced in 2001. Between 1991 and the end of 2000 there was an explicit unlimited coverage by the government. The system is government legislated and administered. Funding is provided on an ex-post basis such that banks are not obliged to pay premiums but to invest a minimum 2.5% of the guaranteed deposits in the Bank of Slovenia bills. The membership to the scheme is mandatory for all deposit taking institutions. The coverage limit was SIT 4.2 million in 2001 which went up to SIT 5.1 million (about $ 27 thousand) in 2003. The coverage is calculated per depositor per institution and it is extended to foreign currency deposits as well.

_Sources_ : Own survey of deposit insurers, IADI Survey: Slovenia (2003).

**Spain.** ( _Deposit Guarantee Fund, Royal Decree Law 4 & 18_ ) Spain has separate deposit guarantee funds for its commercial banks (established in 1977), savings banks (established in 1980), and credit cooperatives (established in 1982). The system is government legislated and privately administered. Each fund is jointly administered by their management commissions with eight members. Four members are from the Bank of Spain and the other four are from the member institutions. Deposits of financial institutions, public bodies, and insiders are not covered. Deposits in financial institutions from other EU countries are also covered. Membership to the Spanish scheme by branches of foreign banks – including the EU banks – is voluntary. The central bank can make limited loans to the Fund. The premiums are assessed annually with flat rate. In 2003 the rates were 0.6% for commercial banks, 0.4% for savings banks, and 1% for credit cooperatives. The coverage limits have taken the following values historically: 1977: 500,000 pesetas, 1980: 750,000 pesetas, 1981: 1.5 million pesetas, 1995: 15,000 ecus, 1996: 15,000 euros, 2000: 20,000 euros. _Sources_ : Own survey of deposit insurers, Garcia (1999), IADI Survey: Spain (2003), Institute of International Bankers (1997), Kyei (1995).

**Sri Lanka.** The scheme of Sri Lanka was established in 1987. It is officially administered and jointly funded. The central bank provided the initial capital and can advance funds. Membership to the scheme is voluntary. Deposits in foreign currencies are not covered. Deposits of the government, public corporations,

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