Deposit guarantee systems are a crucial part of the safety net, i.e. a system of institutional and regulatory solutions implemented to protect the financial system against destabilization. They are pretty young if compared with other elements of the safety net - 75% of the official guarantee systems functioning in the world have been established over the last twenty years. As these instruments are developed very dynamically, new solutions are constantly being sought.

Guarantee systems are fairly complex mechanisms and they vary significantly across the globe. The differences pertain to virtually each component that determines their final structure. The paper provides a comprehensive presentation of deposit guarantee systems. Their individual elements, along with advantages and disadvantages of various solutions are under discussion. Theoretical considerations are accompanied by a comparative analysis of guarantee systems functioning in various countries of the world.

Regulations that aim at protecting depositors may have negative effects, e.g. the phenomenon of moral hazard. The paper takes note of principles for establishment of guarantee systems that may help minimize the phenomenon. Examples presented in the article show that such recommendations are taken into account to a varied extent in practice.

Deposit guarantee systems cannot be treated as a remedy for all banking and economic problems. While a guarantee system can manage a limited number of bankruptcies, it cannot be expected to ease a crisis of the whole banking system. Therefore, it is necessary to come up with comprehensive solutions covering the remaining elements of the safety net, including the government.