COVID-19 and Covered Deposits

Understanding and managing the risks associated with COVID-19 is a priority area of concern for deposit insurers on a global basis. This paper investigates quarterly growth rates of covered deposits and finds statistically significant evidence that during the first six quarters of the pandemic, quarterly growth of covered deposits has shifted upwards by 1.5 %-points. On a per-quarter basis, we find evidence of statistically significant increases in the second half of 2020. Results are based on a September 2021 member survey conducted by the International Association of Deposit Insurers in conjunction with the State Corporation Deposit Insurance Agency (Russian Federation)