Depositor Preference and Deposit Insurance Schemes - Challenges for Regulatory Convergence and Regulatory Coordination in Asia

Abstract

This chapter examines the challenges for achieving regulatory convergence and coordination for depositor preference rules and explicit deposit insurance schemes at the regional level in Asia.1 An examination of the challenges in this area reveal the inherent political difficulties in reconciling the need to maintain national regulatory and fiscal sovereignty with the need to formulate an effective cross-border regulatory response for addressing the systemic risks arising out of closer regional banking integration in Asia.