On a comprehensive duration data set covering 189 countries from 1960 to 2015, we employa Heckman two-step selection model to investigate determinants of deposit insurance coverage.We find that macroeconomic status, bank structure and regulatory, political institution, legalsystem and deposit insurance design characteristics have a significant effect on deposit insurancecoverage. Moreover, empirical results show that the impact factors are different betweendeveloping and developed countries,

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... ecially the design characteristics. Specifically, fordeveloping countries, the scheme with the Foreign currency will support a higher coverage. And fordeveloped countries, the Interbank deposits will lead to a lower coverage, but the No coinsuranceshows the opposite effect. It is noteworthy that both the Payouts and Backstop from governmentinfluence the coverage setting conversely in different samples, which implies that there maybe higher banks' risk-taking incentives in developing countries after setting up explicit depositinsurance system.