This book provides a comprehensive overview of funding arrangements for explicit deposit insurance schemes. Responding to international guidelines and best practice, it discusses policy decisions and operational challenges which deposit insurers face in the financial management of ex-ante deposit insurance funds. Numerous examples are provided, and solutions offered on sources and uses of funds, focusing on target and optimal funding.

 Coverage includes:

• the role that modern deposit insurance schemes play in ensuring financial stability
  
• how to design the main deposit insurance features in order to maximize compliance with international standards
  
• the different types of funding and financial planning for deposit insurance
  
• methods for setting the target fund size level
  
• optimal deposit insurance funding
• challenges faced by the European Union members following new deposit insurance and bank resolution directives.

The book concludes by providing a comprehensive overview of funding issues and recommendations for deposit insurance schemes in the European Union.