Hostname: page-component-cd9895bd7-jn8rn Total loading time: 0 Render date: 2024-12-25T08:12:27.995Z Has data issue: false hasContentIssue false
  • English
  • Français

Deposit Insurance in the United States: Evaluation and Reform

Published online by Cambridge University Press:  19 October 2009

William E. Gibson
Get access Rights & Permissions [Opens in a new window]

Extract

The federal deposit insurance system of the United States was instituted as a result of severe financial crises in the United States and was intended to prevent the recurrence of some of the evils of such crises, specifically those resulting from bank deposit losses. Since the Federal Deposit Insurance Corporation (FDIC) was established in 1934, the United States has not experienced banking panics or harmful effects on the economy due to widespread destruction of bank deposits. As a result, there is a fairly widespread feeling that the present deposit insurance system has been a success. If prevention of panics and large-scale deposit destruction are the only criteria for success, this judgment may be justified, although, if the insurance system uses resources, it must be proved that panics and deposit losses would be unacceptably frequent or large in its absence.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 7 , Issue 2 , March 1972 , pp. 1575 - 1594
Copyright
Copyright © School of Business Administration, University of Washington 1972

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

[1]Board of Governors of the Federal Reserve System. “Statement on Proposed Changes in Federal Deposit Insurance.” Federal Reserve Bulletin, Vol. 49, No. 5, May 1963, pp. 626–627.Google Scholar
[2]Charnes, A., and Littlechild, S. C.. “Intertemporal Bank Asset Choice with Stochastic Dependence.” Invited Paper, TIMS/ORSA Joint Meeting, San Francisco, May 1–3, 1968.CrossRefGoogle Scholar
[3]Cohen, Kalman J., and Hammer, Frederick S.. “Linear Programming and Optimal Bank Asset Management Decisions.” The Journal of Finance, May 1967.CrossRefGoogle Scholar
[4]Commission on Money and Credit. Money and Credit. Englewood Cliffs, N.J.: Prentice Hall, 1961, 1, p. 171.Google Scholar
[5]Richard V., Cotter. “Capital Ratios and Capital Adequacy.” National Banking Review, March 1966, pp. 333–346.Google Scholar
[6]Howard D., Crosse. Management Policies for Commercial Banks. Englewood Cliffs, N.J.: Prentice Hall, 1962.Google Scholar
[7]Milton, Friedman and Schwartz, Anna J.. “Money and Business Cycles.” Review of Economics and Statistics, XLV, No. 1, Part 2: Supplement, February 1963.Google Scholar
[8]Golembe, Carter H. “The Future Shape of Banking Regulation.” The Journal of Finance, May 1971, pp. 599–604.CrossRefGoogle Scholar
[9]Gray, Kenneth B. Jr. “Top Management Decision Aids in Banking.”Invited Paper, Tenth American Meeting of the Institute of Management Sciences,Atlanta, Georgia,October 1–3, 1969.Google Scholar
[10]Jacobs, Donald. “The Framework of Commercial Bank Regulation: An Appraisal.” The National Banking Review, March 1964.Google Scholar
[11]Kreps, Clifton H. Jr. “Modernizing Banking Regulation.” Law and Contemporary Problems, XXXI, Autumn 1966, pp. 648–672.CrossRefGoogle Scholar
[12]Kreps, Clifton H. Jr., and Wacht, Richard F.. “A More Constructive Role for Deposit Insurance.” The Journal of Finance, May 1971, pp. 605–613.CrossRefGoogle Scholar
[13]Markowitz, Harry. Portfolio Selection. New York: John Wiley and Sons, 1956.Google Scholar
[14]Mayer, Thomas. “A Graduated Deposit Insurance Plan.” Review of Economics and Statistics, Vol. XLVII, No. 1, February 1965, pp. 114–116.CrossRefGoogle Scholar
[15]Meyer, Paul A., and Pifer, Howard W.. “Prediction of Bank Failures.” The Journal of Finance, September 1970, pp. 853–868.CrossRefGoogle Scholar
[16]Peltzman, Sam. “Capital Investment in Commercial Banking and Its Relation to Portfolio Regulation.” Journal of Political Economy, 78, January/February 1970, pp. 1–26.CrossRefGoogle Scholar
[17]Peltzman, Sam. “Entry in Commercial Banking.” Journal of Law and Economics, October 1965, pp. 11–50.CrossRefGoogle Scholar
[18]Randall, K. A. “The Federal Deposit Insurance Corporation: Regulatory Functions and Philosophy.” Law and Contemporary Problems, XXXI, Autumn 1966, pp. 696–712.CrossRefGoogle Scholar
[19]Schotta, Charles. “Discussion” (“A More Constructive Role for Deposit Insurance” by Clifton H. Kreps, Jr., and Richard F. Wacht). The Journal of Finance, May 1971, p. 650.Google Scholar
[20]Sharpe, William F.Portfolio Theory and Capital Markets. New York: McGraw-Hill Book Company, 1971.Google Scholar
[21]Tussing, A. Dale. “The Case for Bank Failures.” Journal of Law and Economics, October 1967, pp. 129–148.CrossRefGoogle Scholar
[22]Subcommittee of the Committee on Banking and Currency Hearings before a United States Senate, Eighty-eighth Congress, First Session, on S. 1642, p. 227.Google Scholar