Abstract

Some conceptual issues, connected with the development of an effective loan guarantee system (deposit insurance) in the national banking system are presented. Special emphasis is placed on the key stages of its design, which should reflect the objectives set to the system, as well as the specific features of the particular banking system and state. Also discussed are the range, membership principles, coverage level, financing approaches as well as the possible options to institutionalize the deposit insurer and its place in the national bank insurance network. A review of the development of deposit guarantee systems in this country reflecting the 120 year history of our banking system is given.