Date of Conferral

2020

Degree

Ph.D.

School

Management

Advisor

Steven D. Tippins

Abstract

AbstractFollowing the 2007–2008 global financial crisis, the Financial Stability Board identified several areas of weakness in the delivery of deposit insurance, among other interventions. One of the key recommendations related to the use of data by deposit insurers to make their coverage limits more robust. The purpose of this quantitative non-experimental cross-sectional study was to test the impact of 4 data sets—aggregate bank risk, the aggregate value of insured deposits, the DIF size, and premium levy—on the deposit insurance coverage limit. The investigation comprised a pilot study and a survey of deposit insurers from the International Association of Deposit Insurers as an international (IADI) representative group. In the pilot study of one IADI member, the Federal Deposit Insurance Corporation (FDIC), the multiple regression results indicated statistical significance for aggregate bank risk β = –0.102, t = –3.319, p < 0 .001; the aggregate currency value of insured deposits β = 0.997, t = 19.523, p < 0 .000; and the premium levy β = 0.117, t = 3.694, p < 0 .000. The Pearson correlation results were aggregate bank risk 0.476, the aggregate currency value of insured deposits 0.963, and the premium levy 0.287, with statistical significance ranging from .000 to .007. The survey results 29of the International Association of Deposit Insurers (IADI) members revealed no statistical significance for any of the 4 variables. Notwithstanding the nonsignificance in the IADI survey, these findings will set the framework for deposit insurers and financial authorities to use statistical industry data to compute or change their coverage limits. This study contributes to positive social change in the development of international standards in deposit insurance.

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