Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of Dallas
Southwest Economy
Restoring banking's safety net: deposit insurance's steeper cost
Kory A. Killgo

A recession now in its 21st month has presented tremendous challenges to the deposit insurance system. Actual and expected bank failures have left the Deposit Insurance Fund below its mandated level. The Federal Deposit Insurance Corporation has responded by raising the premiums banks pay. Premiums will rise for banks in the Dallas-based Eleventh Federal Reserve District--but not by as much as they will for banks in the rest of the country. This additional cost is an important consideration because every dollar spent on insurance is a dollar that can't be lent or otherwise invested.

Download Full text
Cite this item
Kory A. Killgo, "Restoring banking's safety net: deposit insurance's steeper cost" , Federal Reserve Bank of Dallas, Southwest Economy, issue Q3, pages 16-19, 2009.
More from this series
JEL Classification:
Subject headings:
Keywords: Deposit insurance ; Federal Deposit Insurance Corporation ; Bank failures
For corrections, contact Amy Chapman ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal