Journal Article

Raising the deposit-insurance limit: a bad idea whose time has come?

Abstract: Federal deposit insurance protects the savings of small depositors, but it increases the likelihood that banks will take risks they otherwise would not have. Some bankers have suggested doubling the level of coverage to $200,000. While such an increase may put smaller banks on a par with larger ones, it exceeds the amount necessary to protect small savers and is unfair to taxpayers.

Keywords: Deposit insurance;

Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Economic Commentary

Publication Date: 2000

Issue: Apr

Order Number: 2