Core Principles for Effective Deposit Insurance Systems

Basel Committee on Banking Supervision and International Association of Deposit Insurers

Executive Summary

The Core Principles brought forward in the document are reflective of, and designed to be adaptable to, a broad range of country circumstances, settings, and structures. These are intended as a voluntary framework for effective deposit insurance practices. National authorities are free to put in place supplementary measures that they deem necessary to achieve effective deposit insurance in their jurisdictions. Specific country circumstances should be considered in the context of existing laws and powers to fulfill the public policy objectives and mandate of the deposit insurance system.

The document considers that an assessment of a country´s compliance with the Core Principles can be a useful tool for countries that are implementing, reviewing or actively reforming their deposit insurance system. In addition, a review of the broader safety-net functions, presented as preconditions in the document, is important as these can have a direct effect on the deposit insurer´s ability to fulfill its mandate.