The article examines how the cost of deposit insurance and moral hazard behavior in Sudan's banking sector are related. It looks at two types of risks: credit risk and managerial efficiency risk. The study shows that banks with higher credit risk tend to have more deposit insurance coverage, while those with lower managerial efficiency risk have less coverage. Banks with overpriced insurance premiums are often inefficient in management. The research also found that different types of banks (national, foreign, mixed ownership) have similar average insurance premiums compared to their credit default risks.