A reexamination of the costs and benefits of Federal deposit insurance.

From: Business Economics | Date: July 1, 1992| Author: Hein, Scott E. | Copyright information

The Federal deposit insurance program is regarded by the public as beneficial to the health of the financial system. There are inherent costs involved, though, that business and economic theorists consider as serious. So far, no definitive study on costs and benefits has been made.

Mention of federal deposit insurance evokes two disparate responses in today's financial environment. Bankers and the public seem to view federal deposit insurance in an overall favorable light. While...

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