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Document Type

Case Study

Case Series

Account Guarantee Programs

JEL Codes

G01, G28

Abstract

Russian authorities responded to the Global Financial Crisis (GFC) in September and October 2008 with various measures to provide liquidity to the banking sector and restore market confidence. Among these, on October 13, 2008, Russia amended its deposit insurance system. This amendment increased the deposit insurance cap from RUB 400,000 to RUB 700,000 (about USD 15,000 to USD 26,000) and abolished co-insurance, increasing the guarantee’s full coverage of deposits from 90% to 100%. The Deposit Insurance Agency (DIA) administered the deposit insurance system. It covered all household deposit accounts and was mandatory for all banks operating in Russia. Banks were required to pay a quarterly premium. In 2008 and 2009, 58 institutions failed. These failures affected 599,000 depositors, totaling RUB 22.1 billion. In 2014, the State Duma further increased the deposit insurance cap to RUB 1.4 million.

Date Revised

2022-07-15

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