Influence of Systemic Risk on Sufficiency of the Deposit Insurance Fund

The introduction of Deposit insurance is an important step towards improving the overall efficiency of the banking sector. Increasing public confidence in financial institutions is a priority for the Deposit insurance system. However, as the world practice shows, the presence of compensations reduces the incentives of depositors to control the activities of credit institutions. Thus, the positive effects of state guarantees can be compensated by the increasing individual risk of a commercial organization. The introduction of effective instruments of control over the risks accepted by banks can reduce the potential systemic risk of the financial sector. The approach proposed in the paper, which links unexpected losses of individual financial market participants with the rate of replenishment of the insurance Fund, is of particular interest to regulatory banking bodies. This method allows to take into account the individual characteristics of credit institutions in the formation of a differentiated scale of deductions. In the framework of the work, the mechanism of assessment of possible losses during the period of systemic risk is able to compensate for the negative consequences of the introduced scale of differentiated contributions in Russia in 2015. According to the presented calculations, the differentiated scale of contributions assumes that credit institutions will first of all take care of their rating, reducing the probability of default in order to reduce the costs of replenishment of the Deposit insurance Fund. Thus, the proposed method allows to maintain stability in the financial sector after increasing government guarantees and reduce the burden from the most stable credit institutions.