Influence of Insurance Coverage Value on Bank's Deposits Structure

Deposit Insurance Agency was founded in 2004. Since that time, the amount of insurance coverage increased several times. But the most interesting case is the last increase in the size of insurance payments from 700 thousands rubles to 1.4 million rubles. The aim of the study is to assess the impact of insurance coverage on the bank’s deposit structure. The novelty of the conducted research is the analysis of the joint impact of coverage and amount of bank assets for the term duration of deposits. 200 banks, which are in the top of the rankings by total assets at the beginning of 2016, were included in the sample. This resulted in the following conclusions. When the amount of insurance coverage is as up to 700 thousand rubles and 1.4 million rubles there is an increase in the proportion of long-term deposits in the biggest banks. At the same time there is an increase in the proportion of mid-term and short-term deposits in the small banks. Summing up, it should be noted, that for the long-term deposits people prefer to use large and reliable banks, the insolvency risk of which is minimal. At the same time to preserve and grow money, people prefer to use less reliable small banks, as the often offer higher interest rates on deposits.