small_business_investmentInsurance of depositors of a bank or other financial institution in case of failure by the bank to fulfill its obligations. The advantage of deposit insurance is that it saves individuals and small entrepreneurs from a financial disaster as a result of loss of deposits.
The main argument in favor of deposit insurance is only that any bank or financial institution can theoretically go bankrupt, so it is better to have an insured deposit at interest in a medium-sized bank than uninsured in the most reliable one.

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