Principle objective of this article is to Define and Discuss on Deposit Insurance System. Deposit insurance is usually a system established by the government to protect depositors against the losing of their insured deposits located with member institutions should the member institution fails. activities of Deposit Insurance System are Protect small depositors, Improving more favorable bank services, Improve public confidence, Increase savings and encourage economic growth and Improve stability of financial system. Commercial and Islamic banks that are member institutions of PIDM are generally known as ‘member banks’.
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