Issues in the Reform of Deposit Insurance and Regulation of Depository Institutions

In the United States, the thrift industry crisis and evidence of financial weakness in the banking industry have raised concerns about the cost-effectiveness of the present framework of deposit insurance and regulation of depository institutions that serves to control systemic risks. The reform prop...

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Bibliographic Details
Corporate Author: International Monetary Fund
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 1990
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary:In the United States, the thrift industry crisis and evidence of financial weakness in the banking industry have raised concerns about the cost-effectiveness of the present framework of deposit insurance and regulation of depository institutions that serves to control systemic risks. The reform proposals discussed in this paper aim to create a more cost-effective approach by either modifying the operation of the deposit insurance funds to reduce the value of the deposit guarantee or altering those regulations of depository institutions that limit portfolio risk to reduce their overall cost. Consideration is given to both the potential effectiveness and practicability of the proposed reforms
Physical Description:28 pages
ISBN:9781451957907