Deposit Insurance Systems (DIS): A sound, competitive banking system is important to a nation's economic strength. Every scheduled Bank plays an important role as the intermediation of funds from depositors to consumers and investors as well as in the transmission of monetary policy. So, public confidence in the banking sectors is very crucial. Deposit Insurance Systems (DIS) is the key element in maintaining confidence and promoting financial stability through increasing saving in the banking sectors.
Deposit
Insurance Systems is a measure to protect bank depositors, in full or in part,
from losses caused by a bank's inability to pay its debts when owing. Deposit
Insurance Systems is one of the components of financial safety net that is
meant to promote financial stability.
Deposit
Insurance plays a key role in maintenance of financial stability by sustaining
public confidence in the banking system through protecting depositors,
especially small and less sophisticated depositors, against loss of deposit to
a significant extent.
The Significant objectives of Deposit Insurance Systems in Bangladesh, like in all other countries, are a contribution to the overall financial stability. Moreover, the following are the special objectives of Deposit Insurance Systems in Bangladesh:
· Protect small depositors,
· E4nhance public confidence,
· Enhance the stability of the financial system,
· Increase savings and encourage economic growth,
· Enhancing more propitious bank services.
Deposit
Insurance Systems (DIS) is now protecting Deposits in the Bank and insurance
benefits in the unlikely event of a number of Banks. Deposit insurance is a
system established by the Government of Bangladesh to protect depositors
against the loss of their deposits in the event that a scheduled bank is unable
to meet its obligations.