Measuring the Impact of Full Coverage Deposit Insurance Policy in a Probit Model : A Study of the Privately Owned Commercial Banks in Turkey

Abstract

This study analyzes the impact of full coverage deposit insurance policy as well as bank specific factors and macro economic conditions on bank failure over a sample of 35 privately owned commercial banks in Turkey for the period 1991-1998. The model predicts a high probability of bank failure associated with full coverage deposit insurance policy.Bank failure, Deposit Insurance