The Perspective of Effectiveness of Risk-based Insurance Premium for Georgia
AbstractThe effective implementation of deposit insurance system requires careful assessment of all the elements of the system. The article focuses on the importance of risk-based insurance premium in successful mitigation of the problem of moral hazard, which may be provoked by the system. Risk assessment method that can be used in Georgia to assign different banks to different risk categories and to calculate insurance premium accordingly is also discussed. Successful implementation of DIS is largely determined by the attitude of depositors to the system. The article demonstrates the survey results to show how Georgian depositors are to react on the requirements of the system.