Deposit Insurance, Remittances, and Dollarization: Survey‐Based Evidence from a Top Remittance‐Receiving Country

18 Pages Posted: 14 May 2020

See all articles by David Grigorian

David Grigorian

International Monetary Fund (IMF)

Maxym Kryshko

International Monetary Fund (IMF)

Multiple version iconThere are 2 versions of this paper

Date Written: November 2019

Abstract

The study uses a unique survey of remittance‐receiving individuals from Tajikistan to study the impact of policy awareness on consumer behavior. The results show that knowledge of deposit insurance encourages the use of formal channels for transmitting remittances and reduces dollarization. Given the size and importance of remittances in Tajikistan, improving financial literacy and better publicizing details of the social safety net may encourage a more frequent use of formal channels for transferring remittances and reduce reliance on foreign exchange for transaction purposes. This is likely to improve bank profitability, enhance financial stability, and improve access to finance.

Keywords: deposit insurance, dollarization, remittances, Tajikistan

Suggested Citation

Grigorian, David A. and Kryshko, Maxym, Deposit Insurance, Remittances, and Dollarization: Survey‐Based Evidence from a Top Remittance‐Receiving Country (November 2019). Economic Notes, Vol. 48, Issue 3, pp. n/a-n/a, 2019, Available at SSRN: https://ssrn.com/abstract=3597072 or http://dx.doi.org/10.1111/ecno.12138

David A. Grigorian (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Maxym Kryshko

International Monetary Fund (IMF)

Kuwait

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