Explicit and limited deposit insurance

The next step for Kuwait?

Dr Mohammad Al-Dabbous

Deposit insurance is an important part of the banking safety net, as it minimises the spread of systemic crisis by preventing the transmission of insolvency from one bank to another and protects depositors from failing or likely-to-fail banks, or what the Financial Stability Board (FSB) Key Attributes define as a bank that is "no longer viable or likely to be no longer viable, and has no reasonable prospect of becoming so". ¹