Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 10, 2001 erstellt
Beschreibung:
In the aftermath of the 1997 crisis, many Asian countries including Thailand are examining options for transitioning from blanket deposit guarantees to more limited and explicit deposit protection arrangements. Though the need to reduce blanket guarantees and their associated costs is well understood, it is critical for Thailand that this transitioning process be effectively managed and that a well designed explicit DIS be introduced. The full implementation of a DIS should only be undertaken when the banking system returns to normalcy and the financial and economic environment is conducive. Otherwise, transitioning could be a potentially dangerous proposition leading to increased bank fragility, 'capital flight' and possibly 'flight from the currency' and a fertile ground for moral hazard and other agency problems. The key questions are how to manage the transition process in a timely, orderly and constructive manner and how to design an incentive compatible DIS for all bank stakeholders. Transitioning to a DIS should be seen as an integral component of a country's overall financial sector reform strategy. Transitioning is fundamentally a dynamic, trust building, process-oriented management problem as inferred by Chaipravat and Hoontrakul [2001]. It is critical also when designing a DIS to effectively balance the dual conflicting goals of (1) protecting small, less financially sophisticated depositors and contributing to financial stability and (2) minimizing bank incentives to take excessive risk. In this paper, after taking into account Thailand's unique banking system structure - highly concentrated in both banks and large depositors -an innovative two-tier hybrid DIS model is proposed. A publicly administered compulsory system would provide protection for low coverage level bank deposits (i.e. similar to an FDIC, CDIC approach) and a private/public system akin to that used in Germany would provide additional protection for high coverage level bank deposits. Some rules-based check lists, policy recommendations and implication issues are presented