Deposit insurance can be in two forms. There is implicit deposit insurance , where there are no stated rules but depositors have assurances implied by governments’ action either through precedence or stated intention. Then there is explicit deposit protection, where the terms and conditions of the scheme are explicitly stated in a statute. The scheme provides a legally enforceable guarantee on all, or a portion of the principal, and in some cases the interest, on a deposit. Under an explicit scheme, the statute states categorically the types of deposits that are covered in the event of bank failures. Table 1 shows countries with explicit and implicit deposit insurance schemes. It should be noted that some countries continuously modify their schemes in response to developments in their financial system.

The types of institutions covered are also influenced by the objectives of the scheme. Where the objective is to protect the entire banking system, as is the case with Jamaica, the legislation requires that all banks be covered. Where the aim is broad, most types of deposits are covered. Table 2 shows the main features (date established, whether the scheme is voluntary or compulsory, types of deposits covered, coverage limit, funding and premium base) of explicit deposit protection schemes in a number of countries.