Deposit Insurance:

Summary of Analysis of Reform Proposals

GGD-86-32B: Published: Sep 30, 1986. Publicly Released: Sep 30, 1986.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

GAO studied the interrelationship of financing, risk, and industry structure in the deposit insurance system and discussed proposals for reform, specifically: (1) how the Federal Deposit Insurance Corporation (FDIC) and the Federal Savings and Loan Insurance Corporation (FSLIC) treat the largest commercial banks and savings institutions which they insure; (2) financing deposit insurance without relying on taxpayer subsidies; (3) varying insurance premiums according to the degree of risk posed by individual institutions; (4) protecting the deposit insurance system by increasing minimum capital requirements for some or all insured institutions; (5) achieving an appropriate degree of consistency between the FDIC and FSLIC insurance programs; and (6) defining the roles of insured deposits and of insured institutions in the economy.

GAO noted that its study does not: (1) endorse specific proposals for reform; or (2) conclude that comprehensive congressional action is urgently needed. GAO found that, to achieve deposit insurance reform, changes should be made to: (1) ensure that deposit insurance continues to be an industry-financed system; (2) increase the extent to which market forces and supervisory procedures are used to price deposit insurance risk and to influence the risk-taking characteristics of insured institutions; and (3) clarify the roles of insured deposits and of institutions with deposit insurance.

Nov 6, 2017

Oct 25, 2017

Oct 12, 2017

Sep 26, 2017

Sep 7, 2017

Jul 31, 2017

Jul 26, 2017

Jul 24, 2017

Looking for more? Browse all our products here