The Legacy of Deposit Insurance: The Growth, Spread, and Cost of Insuring Financial Intermediaries
56 Pages Posted: 18 Jun 2000 Last revised: 28 Jul 2022
Date Written: June 1997
Abstract
Without the Great Depression, the United States would not have adopted deposit insurance. While the New Deal's anti-competitive barriers have largely collapsed become" deeply rooted. This paper examines how market and political competition for deposits raised the level of coverage and spread insurance to all depository institutions. A comparison of the cost of federal insurance with a counterfactual of an insurance-free system shows that federal insurance ultimately imposed a" higher cost but achieved political acceptance because of the distribution of the burden.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
The Regulation and Supervision of Banks Around the World: A New Database
By James R. Barth, Gerard Caprio, ...
-
Does Deposit Insurance Increase Banking System Stability? An Empirical Investigation
-
Deposit Insurance and Financial Development
By Robert Cull, Lemma W. Senbet, ...
-
Deposit Insurance Around the Globe: Where Does it Work?
By Asli Demirgüç-kunt and Edward J. Kane
-
Deposit Insurance Around the Globe: Where Does it Work?
By Edward J. Kane and Asli Demirgüç-kunt
-
Market Discipline and Financial Safety Net Design
By Asli Demirgüç-kunt and Harry Huizinga
-
Deposit Insurance Around the World: A Comprehensive Database
By Asli Demirgüç-kunt, Baybars Karacaovali, ...
-
Deposit Insurance in Developing Countries
By Samuel Talley and Ignacio Mas