Management and Roles of Deposit Insurance Institution in Attracting Deposits for Jordanian Banking Sector (2000-2013)

Abstract

Deposit Insurance Corporation aims to protect depositors at banks to guarantee their deposits under provisions of the Deposit Insurance Corporation Act 2000, in order to encourage savings and promote confidence in the banking system in the Hashemite Kingdom of Jordan. Therefor established in the Kingdom institution called Deposit Insurance Corporation that enjoys a legal personality with financial and administrative independence, and it has this capacity to carry out all legal actions including entering into contracts, borrow, possess movable and immovable property necessary to achieve its objectives and be the center of the institution in Oman, also may be open branches and offices across the Kingdom. (deposit Insurance Corporation Act No. 33/2000). The system is known deposit guarantee that the system works to provide the possibility of compensation categories of depositors owners of certain types of deposits by less or too much of their deposits that are exposed to danger as a result of the faltering bank deposited these deposits has ceased payment accordingly. (Indian, 1992, p 83).