“An effective deposit insurance system contributes to the stability of the financial system and protects less financially sophisticated depositors from loss.” At present, the connection between different financial systems goes into more and more internationally in substance so that the supervision is required to be worked validly cross borders. Therefore, the deposit insurance system needs an international standard for various states to reference and the core principles for effective deposit insurance system are a favourable series of codes for the regulator of different jurisdiction to consider.  

Reference

Allen William A. and Wood Geoffrey, ‘Defining and Achieving Financial Stability’ (2006) 2 Journal of Financial Stability 152

‘APEC Policy Dialogue on Deposit Insurance: Policy Conclusions Paper’ (2004) Canada Deposit Insurance Corporation

Banking Act 2009

Bank for International Settlements, ‘Principles for Enhancing Corporate Governance—Consultative Document’ (March 2010) <