Compliance assesment of Macedonian deposit insurance system with the core principles for effective deposit insurance system
Compliance assesment of Macedonian deposit insurance system with the core principles for effective deposit insurance system

Summary/Abstract: The purpose of this research is to evaluate the compliance of the Macedonian deposit insurance system with the Core Principles for Effective Deposit Insurance Systems. The results of the evaluation show that the system fully complies with 11 principles, partially complains with 2 and is non-compliant with 4 principles, while it is not possible to determine compliance with one of the 18 core principles. The deposit insurance system is not compliant with principle 1 – Public policy objectives, principle 7 – Cross border issues, principle 13 – Legal protection and principle 14 – Dealing with parties at fault in a bank failure. The principle 2 – Mitigating moral hazard and the principle 12 – Public awareness have been partially compliant and the principle 10 – Transitioning from a blanket guarantee to a limited coverage deposit insurance system is the one which compliance is not possible to determine. After the evaluation analyses this paper presents recommendation in order to improve the compliance and the efficiency of the deposit insurance system of Republic of Macedonia.

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