A mechanism to stabilize the banking system. Usually a guarantee scheme for deposits, based on legislation such as the central bank law, banking law, or the constitution.
Certain types of deposits with a financial institution are insured up to a maximum amount, in the event that the financial institution fails (i.e., goes bankrupt).
U.S. government backing of bank deposits up to a certain amount -- currently, $100,000.
Protection of certain types of assets against loss. Bank and trust company deposits are covered by the Canada Deposit Insurance Corporation (CDIC) up to a maximum of $60,000. Mutual funds are not covered by deposit insurance.
A pooled reserve, accumulated by periodic levies against multiple banks, which supplements the fractional reserve which individual banks maintain against their outstanding demand-obligations. ‘Insurance' is a matter of establishing reserves against potential loss due to unavoidable external risks. Government sponsored ‘deposit insurance' is popular within many banking regions whereby the pooled reserves protect depositors in the advent of insolvency by the financial institution. In the United States for example, some bank accounts are covered by government sponsored deposit insurance up to $100,000 US-dollars, in Canada up to $60,000 CDN.
an insurance plan designed to protect the money you deposit if a bank, credit union or trust company fails (see CDIC and CUDIC)
The guarantee by a federal agency that an individual depositor at a participating depository institution will receive the full amount of the deposit (up to $100,000) if the institution becomes insolvent.
A system that guarantees that people who deposit their money in a financial institution are protected if the institution fails. Depending on the type of account and ownership, this protection totals $100,000 or more. Two government agencies provide this type of coverage: the National Credit Union Administration insures credit unions and the Federal Deposit Insurance Corp. covers banks. Some financial institutions buy similar coverage from private insurers.
Insurance on the positive balance of an account secured by the Canadian Deposit Insurance Corporation. · See Also · Canadian Deposit Insurance Corporation
The Canada Deposit Insurance Corporation insures depositors' funds to a maximum of $60,000 per depositor, per institution, with some exceptions, in the event of the failure of a federal financial institution. Deposits in some provincial financial institutions are also covered.
Insurance of deposits in federally-insured financial institutions up to $100,000 per account.
Coverage provided by the Canada Deposit Insurance Corporation (CDIC) against the loss of deposits with member institutions because of insolvency. The maximum deposit insurance is $60,000 for each person in each member institution.
Explicit Deposit insurance is a measure introduced by policy makers in many countries to protect deposits, in full or in part, in the event of a "run" on a bank or banks. The failure of a bank has the potential to trigger a much broader spectrum of harmful events. Deposit insurance systems is one component of a financial system safety net that contributes to the promotion of financial stability.