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Federal Reserve Bank of Chicago
Economic Perspectives
FDIC losses in bank failures: has FDICIA made a difference?
George G. Kaufman
Abstract

This article finds that, although the number of failed banks declined sharply after the passage of the FDIC Improvement Act (FDICIA) in 1991, losses to the FDIC as a percent of assets of failed banks actually increased. Only if adjustments are made both for large losses at a few larger outlier banks and for differences in the size distribution of failures is the FDIC's loss rate in the post-FDICIA period (1993-2002) reduced to below its pre-FDICIA (1980-92) rate.


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George G. Kaufman, "FDIC losses in bank failures: has FDICIA made a difference?" , Federal Reserve Bank of Chicago, Economic Perspectives, issue Q III, pages 13-25, 2004.
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Keywords: Bank failures ; Federal Deposit Insurance Corporation ; Federal Deposit Insurance Corporation Improvement Act of 1991
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