coverage was initially full and in 2001 it was changed to four times the per capita GDP, which was still in existence as of 2003.

_Sources_ : Garcia (1999), IADI Survey: Ecuador (2003).

**El Salvador.** ( _Deposit Guarantee Institution, Bank Law 1999_ ) The Guarantee Institution of El Salvador was established in November 1999 and the system is government legislated and administered. Initial funding was provided through the central bank which is later augmented by premiums collected at a 0.1% annual rate on total deposit liabilities from the members. The membership is mandatory and the coverage limit was an equivalent of $6,700 (approximately Colon 58,424) as of 2003. The previous limits were $4000 (Colon 35,000) in 1999 and $6286 (Colon 55,000) in 2000. Only savings and checking accounts are eligible for coverage.

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

**Estonia.** ( _Deposit Guarantee Fund_ ) The deposit insurance system of Estonia was established in October 1998. The system initially guaranteed 20,000 Estonian kroons (EEK), which was raised to EEK 40,000 as of January 1, 2000. The Guarantee Fund Act entered into force on July 1<sup>st</sup> , 2002 and set coverage levels at EEK 40,000 initially to be raised to EEK 100,000 on December 31<sup>st</sup> , 2003, then to EEK 200,000 on December 31<sup>st</sup> , 2005 and EUR 20,000 starting on December 31<sup>st</sup> , 2007 the latest. The initial funding was granted by the government and banks paid EEK 50,000 at the start-up. The fund can borrow without a government guarantee or ask the government to borrow a limited amount on its behalf. The types of deposits not covered are deposits in foreign currencies, deposits of insiders, money-launderers, governments at all levels, larger businesses, financial institutions including insurance companies, other members of the same corporate group, and those that pay “substantial higher rates”. The coverage amount is calculated per depositor per institution.

_Sources_ : Own survey of deposit insurers, Garcia (1999), U.S. Embassy Reports (1998).

**Finland.** ( _Deposit Guarantee Fund, Act on Credit Institutions_ ) The DIS of Finland was established in 1969. In 1998 it was revised in accordance with the EU directives. Before the changes, deposits were covered in full. In the new system a maximum limit of 150,000 FIM was set for the coverage limit. Currently, the coverage is up to EUR 25,000 per depositor per institution. The scheme is privately administered by the member banks in compliance with the rules prescribed by the Ministry of Finance and supervised by the FSA. Foreign currency deposits are covered. Deposits of the central bank and credit institutions are excluded. The government and central bank have borne losses in the past. Membership to the Fund is mandatory and the premium has a fixed 0.05% fixed part and a variable part based on solvency which can be at maximum 0.25%.

_Sources_ : Garcia (1999), IADI Survey: Finland (2002), Institute of International Bankers (1998), Kyei (1995), Valori and Vesala (1998).

**France.** ( _Fonds de Garantie des Depots_ ) The DIS of France was established in 1980 and revised in 1986. It is an unfunded scheme in which the banks contribute to the fund on demand. There are separate schemes for commercial banks, and for mutual savings and cooperative banks. The system is privately administered and jointly funded. Debt securities insured by institutions, deposits of the central government, insiders, affiliated companies and money launderers are excluded from coverage. Initially, coverage was at 200,000 FF and after 1986 it was raised to 400,000 FF. In 1999, according to regulation 99-05, the limit was finally set at EUR 70,000 per depositor per institution. Coverage extends to foreign deposits as well and there is no co-insurance.

_Sources_ : Own survey of deposit insurers, Fonds de Garantie des Depots (1999), Garcia (1999).

**Germany.** ( _Deposit Security Fund, Savings Bank Security Fund and Credit Cooperation Security Scheme, Federal Association of German Banks_ ) The first nation-wide joint fund operated by private banking sector in Germany was established in 1966 by the Federal Association of German Banks. The fund protected savings, salary, and pensioners’ accounts up to DM 10,000 and other sight and time deposits of natural persons up to DM 20,000. In 1974, the coverage was enlarged to cover up to 30% of the equity capital per depositor, which is still binding in terms of the private Fund. There are separate schemes by the German Savings Bank, Giro Association, and credit cooperative banks (the latter dates back to 1930s to the aftermath of the Great Depression). These guarantee funds aim at protecting the institutions themselves and hence, provide indirect protection to depositors as a by-product. In 1994, a voluntary deposit protection

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