Legal Protection to Guarantee Bank Deposits :A comparative Study

Abstract

The subject of legal protection to guarantee bank deposits is considered as one of the most significant topics that took consideration lately, especially after the sequence of financial crisis witnessed in large countries. This has been reflected negatively on banks and led them to bankruptcy, depositors’ miss-confidence. That has forced governments in those countries as well as growing countries to correct those situations and assist bankrupt banks to establish independent institutions called (Bank Deposit Insurance Corporation); their objective is to protect small depositors in the banks by insuring deposits and providing a method to guarantee the compensation of depositors via  banks contribution in paying an annual subscription to the corporation.

  In the event banks encounter banking, economic or financial failures, the institution provides advice and guidance as well as financial aid that are considered as the guarantee against bankruptcy for those banks in order to stand with them out of it, correct their course before they stop paying. As for in case they stop payment and the crisis were deepened and the bank was bankrupt, the corporation pays to the depositors as a result of bank stop of payment, moving the method of insurance by compensation is similar to executing compensation by implementing compensation in insurance contracts. In addition to investing the monies of corporation in multiple investment projects for its benefit and the state as clarified by Yemeni legislator in the Act no (21) of 2008 in respect of establishing bank deposits insurance corporation.

The study recommends professorsto play a role in increasing the ambition levelamong students to enable them to continue their studies, and to payattention to the students' satisfaction with their academic specialization by taking care about students' tendencies.