The Systems Covering Natural and Nuclear Disaster: An Inspiration to the Deposit Insurance System

This article focuses on the systems covering the risks of banking failures, and more specifically the deposit insurance, in the context of a financial crisis. By nature, banking default risks present a strong analogy with “large risks” such as natural and nuclear disasters. These latter risks benefit from specific mechanisms regarding their management and financial coverage using specific instruments and governance. Such processes can inspire the current revision of the banking systems for hedging risk at the organizational and financial levels. We therefore consider the opportunity to compare explicitly banking risks, natural and nuclear disasters. This comparison leads to some recommendations for the deposit insurance system.