Abstract
The deposit guarantee system is very important for the maintenance of public confidence in the banking sector, in particular for his role compensation to depositors in case of bank failure, thus avoiding pressure on the solid banks depositors. In many countries in the last twenty years of deposit insurance is experiencing rapid growth, mostly because of the instability in the banking sector that took place during this period. This paper aims to highlight the importance of the system of deposit insurance as a means of maintaining financial stability, the necessary changes and the consequences of changes in the deposit insurance system in Montenegro and the region, especially in line with changes in European Union directives, and to demonstrate good and poor use of the deposit insurance system as a mean of fighting against systemic crises.
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