As a result of the financial crises faced by banks in many countries, bank deposit guarantee companies were established. The importance of guaranteeing bank deposits has increased with the emergence of the role of the banking system in each country and its issue of financial and economic activity. This is in addition to the banks' reliance on deposits as a primary source of financing compared to their own resources. That is why the importance of establishing institutions to guarantee bank deposits has emerged. The deposit guarantee system can be defined as a system to protect small depositors in the local currency of the country from the risks of bank bankruptcy or stopping payment to depositors, especially if the country has a fragile banking system that is prone to many crises, whether theft or embezzlement or imposing wills on banks due to their failure or collapse and declared bankruptcy by the competent court .