Basic Principles of Financial Planning in Ex-ante Deposit Insurance Schemes
Đurđica Ognjenović, Arhivanalitika d.o.o., Zagreb, Croatia
The paper explores main principles of financial planning in ex-ante deposit insurance schemes from a theoretical perspective and in terms of the EU Directive on deposit-guarantee schemes. Further on, the paper assesses how these principles and standards are used in financial planning in deposit insurance schemes around the world for annual budgeting, strategic planning and optimalization of available financial resources. After reviewing available references and different practices, the conclusion is that there are no clear internationally accepted principles for deposit insurers' financial planning, except some broad and general guidelines. Practices in the industry differ significantly. Given the fact that deposit insurance is in fact a monopolistic business, lack of clear principles and lack of proper financial planning may lead to inadequacy of ex-ante funds and negligence on the side of the management of deposit insurance schemes.
Keywords: deposit insurance, financial planning, ex-ante deposit insurance scheme
Year: 2006 | Volume: 30 | Issue: 4 | Pages: 369 - 380
Full text (PDF) | E-mail this article | Download to citation manager
IV / 2006
Analysis of the Exchange Rate and Pricing Foreign Currency Options on the Croatian Market: the NGARCH Model as an Alternative to the Black-Scholes Model
Alex Karagrigoriu, Ilia Vonta
On Distributional Changes of Financial Characteristics in Cyprus: What Does the Survey of Consumer Finances Say?
Book review: Intergovernmental Fiscal Relations in Central and Eastern Europe: a Source Book and Reference Guide / Francis J. Conway [et al.]. Washington: World Bank Institute, 2005
Book review: Ekonomska podloga hrvatskog pitanja / Rudolf Bićanić. Zagreb: Dom i svijet : Economics Faculty, 2004