Застраховане на банкови депозити
Insurance of Bank Deposits

Author(s): Marina Stamcheva
Subject(s): Economy, Business Economy / Management, Financial Markets
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: deposit insurance; deposit guarantee; banking risk
Summary/Abstract: Deposit insurance is an important mechanism for protecting depositors and maintaining the stability of the banking system. Its main purpose is to guarantee the recovery of funds in the event of a bank failure and to prevent banking crises and mass withdrawals of deposits. In Bulgaria, the system is managed by the Deposit Insurance Fund, and all licensed banks are required to participate in it. Within the European Union, deposits are guaranteed up to 100,000 euros. The paper examines the nature, functions, and development of deposit insurance, as well as its advantages and disadvantages. Practical examples such as the collapse of KTB in Bulgaria, the Northern Rock crisis in the United Kingdom, and the Icesave case in Iceland are also analyzed, demonstrating the importance of guarantee mechanisms for confidence and stability in the financial system. In conclusion, deposit insurance plays a significant role in protecting depositors and limiting financial risk in the modern economy.

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