A report of 600 words about the deposit guarantee mechanism: Specifically, we want you to answer the following question:

What are the risks that the banking system may be exposed to as a result of the existence of a deposit insurance institution?

During the past years, many countries around the world canceled the deposit insurance system due to the new risks created by the existence of this system. What are these risks, and how can a system aimed at enhancing confidence in the banking system increase the existing risks?