CIAO DATE: 08/01

Deposit Insurance Funds: An Instrument of Banking Stability and Issues of Authority, Information and Effectiveness

Abstract

The EastWest Institute is interested in the issue of banking supervision as one of the primary goals of our Economics Program since 1990 has been to support the establishment of a reformed, market-based banking system in Central and Eastern Europe (CEE) and the Former Soviet Union (FSU). As an integral component of our broader work in providing expert support to commercial bank managers and economic policymakers on the concrete aspects of implementing reform-oriented practices and strategies, we see the underlying stability and transparency of the banking system to be of critical importance. In Hungary as elsewhere, banks are indispensable to the smooth functioning of the economy, and the EWI has long subscribed to the view that the banking sector (e.g. in the context of privatisation) is a 'special' sector and requires special treatment.

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