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FDIC Banking Review

Table 5 
Least-Cost Test and Exceptions 
Is the deposit insurer required to resolve failed or failing insured depository institutions in a manner that is least costly to the deposit insurer? If yes, under what exceptions, if any, can the deposit insurer deviate from the least-cost approach? Does either the size of an institution or the fact that it is owned by a governmental entity influence the decision whether and how an insured bank should be resolved
Deposit Insurer Yes No None Systemic Risk Other Yes No
Advanced Economics
Austria (AAR)  

X

       

X

Austria (AABB)  

X

       

X

Belgium

X

 

X

     

X

Canada

X

   

X

 

X

 
France

X

     

X

 

X

Germany (EdB)  

X

       

X

Germany (E)  

X

       

X

Greece  

X

     

X

 
Isle of Mana  

X

       

X

Italy (IDPF)

X

     

X

X

 
Italy (DPFCB

X

 

X 

 

 

 

X 

Japan

X

     

X

 

X

Netherlands          

X

 
Portugal  

X

       

X

Spain  

X

       

X

Sweden  

X

     

X

 
Taiwan Province of China

X

 

X

   

X

 
United Kingdom          

X

 
  Subtotal

7

9 

3

1

3

7

11 

Developing Economies and Economies in Transition
Africa              
  Nigeria

X

     

X

X

 
  Tanzania

X

     

X

X

 
  Uganda

X

 

X

     

X

Europe              
  Czech Republic  

X

     

X

 
  Hungary

X

 

X

     

X

  Latvia  

X

     

X

 
  Lithuania  

X

     

X

 
  Poland

X

 

X

     

X

  Romania  

X

       

X

  Slovak Republic  

X

       

X

  Turkey

X

 

X

     

X

Middle East              
  Bahrain  

X

     

X

 
  Oman

X

     

X

X

 
Western Hemisphere              
  Brazil

X

     

X

 

X

  El Salvador

X

   

X

 

X

 
  Jamaica

X

   

X

 

X

 
  Mexico

X

 

X

   

X

 
  Peru

X

   

X

 

X

 
  Trinidad and Tobago  

X

       

X

 Subtotal

12

7

5

3

4

11

8

Total

19 

16 

8 

4 

7 

18 

19

Note: Classification of economies into "Advanced," "Developing," or "Economies in Transition" is from International Monetary Fund (2000).

aBritish Crown Dependency

AAR = Association of Austrian Raiffesenbanks

AABB = Association of Austrian Banks and Bankers

EdB = Entschadigungseinrichtung deutscher banken

E = Einlagensicherungs

IDPF = Interbank Deposit Protection Fund

DPFCB = Deposit Protection Fund for Co-operative Banks

Last Updated 06/20/2002 Questions, Suggestions & Requests