# **A.2 Details on deposit insurance schemes for each country**

In this section we provide details on the deposit insurance schemes in each country along with sources and the relevant laws and names of the governing institutions wherever available. The sources referenced here are listed with details below in section A.3.

**Albania.** ( _Albanian Deposit Insurance Agency, Law No. 8873, Law on the Insurance of the Deposits_ ) The explicit deposit insurance scheme (EDIS) of Albania was established in March 2002. It has an official administration by the Deposit Insurance Agency. The membership for the fund is compulsory and is contributed by both the state and the banks, where the premiums are not risk-adjusted and they are 0.5% of the average insured deposits. The deposits of up to 350,000 lek are fully insured, and 85% of 350,000 to 700,000 lek is insured.

_Sources_ : Bank of Albania. (2002), IADI Member Profiles: Albanian Deposit Insurance Agency.

**Algeria.** ( _Bank of_ Algeria) The deposit insurance mechanism was established in December 1997. The maximum coverage is 600,000 Algerian dinars per depositor per institution and it has not changed since establishment as of 2004. The system was introduced in response to the expansion of the banking sector with the start up of many private national and international banks. Prior to this date, all the deposit banks were owned by the state (the treasury) with an implicit blanket guarantee. _Source_ : Own survey of deposit insurers.

**Argentina.** ( _SEDESA, Law 24, 485_ ) Before 1979 deposits were unconditionally guaranteed by the Argentinean government. In 1979 an explicit system of deposit insurance scheme was established by the military government. The scheme was optional for private banks and required the insured banks to make contributions to the fund. The central bank provided full coverage for the first million pesos (about $640) and ninety percent thereafter. Later in 1991 the scheme was abolished and substituted by a more transparent supervision. In April 1995, an insurance scheme was re-introduced following the suspension of five private banks by the government. The scheme (SEDESA) covers all types of deposits except ones that pay more than 200 basis points above the reference rate. Membership to the system is compulsory. The scheme has private administration. Current accounts, savings accounts and time deposits are covered up to $30,000. The initial coverage limit of the system was 75% of 100 Million $Arg. This limit was reduced to 75% of 81,000 $Arg. The monthly premiums for banks are 0.015% to 0.06% of deposits. Additional assessments set by the central bank are also made based on a bank’s risk evaluation. The deposits of foreign branches of Argentine banks are not subject to the scheme and deposits of foreign bank branches in Argentina are subject to the scheme. _Sources_ : Garcia (1999), Institute of International Bankers (1999), Kyei (1995), Miller (1993), Oxford Analytica Brief (1995), SEDESA (2003), Talley and Mas (1990).

**Austria.** ( _Deposit Guarantee Fund, Credit System Act_ ) The Deposit Guarantee Fund was established in 1979 and was revised according to the EU directives after 1995. The system has private administration. Funding is ex-post. Government bonds may be issued when necessary. Initially the coverage limit was ATS 200,000 and it was raised to ATS 260,000 in April 1996 following Austria’s entry to the EC. After the ATS/EUR parity was fixed, the sum was slightly adjusted to ATS 275,000 in 1999 since the Euro became legal tender in Austria amounting to EUR 20,000. Deposits of the government, large corporations, insiders and criminals are excluded. The deposits of natural persons are covered in full up to the coverage limit, whereas deposits of non-households are covered only up to 90% of the limit, where the maximum coverage is calculated per depositor per institution (i.e. two or more accounts of the same person in one bank is treated like a single deposit). Unlimited coverage never existed in Austria. _Sources_ : Own survey of deposit insurers, Garcia (1999), Kyei (1995).

**Bahamas.** ( _Protection of Depositors Act_ , _Deposit Insurance Fund_ ) The Deposit Insurance Fund and the Deposit Insurance Corporation were established in November 1999 after the passing of the Protection of Depositors Act in September 1999.  The scheme is legislated by the government and administered by a Board of Management of six members appointed by the Minister of Finance.  Membership is mandatory. Domestic deposits in Bahamian dollars including saving and checking accounts, certificates of deposit, guaranteed investment certificates, travelers checks, money orders, and certified drafts of checks are covered up to 50,000 Bahamian dollars, which has not changed since establishment. The coverage limit is applied per depositor per institution and coverage was never unlimited. There is no co-insurance. The scheme is privately funded by flat rate premiums fixed at 120 of 1% assessed on insured deposits.

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