... taxpayers foot the bill of these disturbances and both depositor and borrowers lose access to their funds and credit facilities respectively which may result in bankruptcy. However this affect does not stop here but also spreads throughout the economy which causes deceleration in growth, some solvent banks to fail due to contagion, derailment of stabilisation programs and also increases poverty in severe cases. A recent example of this is in turkey which caused confidence to fall amongst domestic institutions resulting in a currency crisis due to enormous foreign capital flight. Consequently to limit such crises which result in Banking instability many safety nets were constructed and one which will be considered in this study is Deposit Insurance, which was originally formed in the US (1933) in the middle of the great depression with the intent to prevent extensive banks runs. Deposit Insurance Systems have rapidly expanded across the global over ...

See this essay or coursework document in full right now