Role of ASD
The bankruptcy of a bank and its failure to pay all depositors may trigger loss of confidence of citizens toward banks in particular and in the financial system generally, and consequently the country may enter a financial and general crisis.
Deposit insurance systems generally attempt to provide maximum protection to depositors. Such systems are necessary because depositors, who have limited knowledge of finance and banking transactions, are not able to assess the bank where they have deposited or want to deposit their savings
The Deposit Insurance Agency in our country only insures savings of citizens. The Agency does not insure deposits of companies and businesses conducting production, trade or service activities.
In general, the core of the mission of the Deposit Insurance Agency is to establish public confidence in the banking system and in the national financial system generally. Because of this mission, the Deposit Insurance Agency is identified as the symbol of trust.
Once the Agency is established, for the first time the savings of citizens shall be insured from the risk of bankruptcy of banks.
The main role of the Insurance Deposit Agency is to:
• protect depositors from bankruptcy of the bank where they have deposited their savings;
• make payments based on insured deposits up to a level and according to provisions of law;
• achieve the stability of the financial system.
