Feyen, ErikVittas, Dimitri2012-08-132012-08-132009-06https://hdl.handle.net/10986/10248The expansion of deposit insurance and introduction of debt guarantees have played a crucial role in containing the financial crisis while giving governments time to develop suitable policy responses. But these measures do not address the root causes of the crisis, and they lead to competitive distortions, moral hazard, and large fiscal contingent liabilities. Rolling them back is likely to require an internationally coordinated effort and an answer to the important question, 'exit to what?'CC BY 3.0 IGOACCESS TO FUNDSACCESS TO INSURED DEPOSITSASSETSASSOCIATION OF DEPOSIT INSURERSBANK ACCOUNTSBANK BRANCHESBANK DEBTBANK DEPOSITSBANK FAILUREBANK HOLDINGBANK HOLDING COMPANIESBANK LIABILITIESBANK PERFORMANCEBANK RUNBANK RUNSBANKING CRISESBANKING CRISISBANKING INDUSTRYBANKING SUPERVISIONBANKING SYSTEMBANKING SYSTEM STABILITYBANKING SYSTEMSBANKRUPTCYBASIS POINTSBLANKET GUARANTEESBONDSCAPITAL ACCOUNTCAPITAL FLOWSCAPITAL OUTFLOWSCDSCERTIFICATES OF DEPOSITCOINSURANCECOMMERCIAL BANKSCOMMERCIAL PAPERCOMMITMENT DEVICESCONTAGIONCONTINGENT LIABILITIESCOVERAGE ARRANGEMENTSCOVERAGE CEILINGCOVERAGE OF DEPOSITCOVERAGE OF DEPOSIT INSURANCECREDIBILITYCREDIBILITY OF DEPOSIT INSURANCECREDIT DEFAULTCREDIT DEFAULT SWAPCREDIT EXPANSIONCREDIT GUARANTEECREDIT GUARANTEE SCHEMECREDITORDEBT GUARANTEEDEBT GUARANTEESDEBT ISSUANCEDEBT ISSUESDEBT MARKETSDEFAULT RISKDEPOSITDEPOSIT COVERAGEDEPOSIT INSURANCEDEPOSIT INSURANCE ARRANGEMENTSDEPOSIT INSURANCE CORPORATIONDEPOSIT INSURANCE COVERAGEDEPOSIT INSURANCE DESIGNDEPOSIT INSURANCE INCREASEDEPOSIT INSURANCE SCHEMESDEPOSIT INSURANCE SYSTEMSDEPOSIT LOSSDEPOSIT PROTECTIONDEPOSIT PROTECTION SCHEMEDEPOSITORDEPOSITOR LOSSESDEPOSITSDESIGN OF DEPOSIT INSURANCEDOMESTIC BANKINGDOMESTIC BANKSDOMESTIC CREDITDOMESTIC LIQUIDITYEFFECTIVE DEPOSIT INSURANCEEFFECTIVENESS OF DEPOSIT INSURANCEEMERGING ECONOMIESEXCESSIVE RISKEXCHANGE RATEEXISTING DEBTEXPLICIT DEPOSITEXPLICIT DEPOSIT INSURANCEEXPLICIT DEPOSIT INSURANCE SCHEMEEXPLICIT DEPOSIT INSURANCE SCHEMESFAILING BANKSFEDERAL DEPOSIT INSURANCEFEDERAL DEPOSIT INSURANCE CORPORATIONFEDERAL HOME LOANFINANCIAL CRISESFINANCIAL CRISISFINANCIAL DEVELOPMENTFINANCIAL INSTITUTIONSFINANCIAL INTEGRATIONFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL REFORMSFINANCIAL SAFETYFINANCIAL SAFETY NETFINANCIAL SAFETY NETSFINANCIAL SYSTEMFISCAL RESOURCESFORBEARANCEFOREIGN BANKFOREIGN BANKSFOREIGN BRANCHESFOREIGN CURRENCYFOREIGN CURRENCY DEPOSITSFOREIGN EXCHANGEFOREIGN EXCHANGE RESERVESFOREIGN LIABILITIESFULL BLANKET GUARANTEESFUTURE FINANCIAL CRISESGOVERNMENT GUARANTEESGOVERNMENT INTERVENTIONSGOVERNMENT SUPPORTHIGHER DEPOSIT RATESHOME LOANHOME LOAN BANKSHOST COUNTRYINCENTIVE OF DEPOSITORSINDIVIDUAL BANKSINDIVIDUAL DEPOSITORSINSOLVENTINSTITUTIONAL CAPACITYINSTITUTIONAL INVESTORSINSTRUMENTINSURED BANKINSURED DEPOSITSINVESTOR CONFIDENCEJUNIOR DEBTJURISDICTIONSLARGE BANKSLARGE DEPOSITORSLAST RESORTLENDERLENDER-OF-LAST-RESORTLENDER-OF-LAST-RESORT FACILITIESLEVEL PLAYING FIELDLIQUIDATIONSLIQUIDITYLIQUIDITY SUPPORTLOCAL BANKSMARKET CONDITIONSMARKET DISTORTIONSMARKET PARTICIPANTSMATURITIESMATURITYMONETARY FUNDMONEY MARKETMORAL HAZARDMORAL HAZARD PROBLEMMORTGAGEMORTGAGE LENDINGMUTUAL FUNDSNONBANK FINANCIAL INSTITUTIONSOUTSTANDING BALANCESPOLICY RESPONSESPRIVATIZATIONPUBLIC FUNDSPUBLIC POLICYPUBLIC SECTOR DEBTRATE OF EXCHANGERECESSIONREGULATORY FRAMEWORKREGULATORY FRAMEWORKSRETURNRISK PROFILESRISK-BASED PRICINGSAVINGSSENIOR DEBTSHORT-TERM DEBTSMALL DEPOSITORSSOLVENCYSOLVENTSOLVENT BANKSSOVEREIGN DEBTSOVEREIGN DEBT MARKETSSTRUCTURE OF DEPOSITSUBORDINATED DEBTSUBSIDIARIESSUBSIDIZATIONTIER 1 CAPITALTRADITIONAL DEPOSITTRANSACTIONTRANSACTION ACCOUNTSUNDERLYING ASSETUNINFORMED DEPOSITORSUNIONUNLIMITED PROTECTIONUNSECURED BONDSUNSECURED DEBTWEAK BANKSWHOLESALE FUNDINGWITHDRAWALWorld Bank10.1596/10248