Deposit Insurance
/dɪˈpɒzɪt ɪnˈʃʊərəns/
Definitions
- (n.) A system guaranteeing repayment to depositors if a financial institution fails, protecting bank deposits up to a specified limit.
Deposit insurance helps maintain public confidence in the banking system.
Forms
- deposit insurance
- deposit insurances
Related terms
See also
Commentary
Commonly implemented by government agencies or designated corporations, deposit insurance is a regulatory tool aimed at preventing bank runs and maintaining financial stability.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.