Banking With and Without Deposit Insurance : Mexico ’ s Banking Experiments , 1884 - 2004

Banking Without Deposit Insurance or Bank Panics: Lessons From a Model of the U.S. National Banking System

A Guide to Deposit Insurance Reform

Deposit insurance was introduced in the United States during the Great Depression primarily to promote financial stability. Stability is enhanced because deposit insurance reduces the likelihood of a bank run. During its first four decades, deposit insurance appeared to work well as few banks failed. But in the 1980s, a wave of financial troubles in the banking and thrift industry exposed an un...

FDIC Banking Review - 1998

The author provides an overview of electronic cash, discussing the technology of this new medium of payment, the financial costs and benefits of moving to electronic cash, and the issue of consumer acceptance. An appendix explores the relationship between counterfeiting and electronic cash. This article explores the root problems that have led to the crisis in Japanese banking and what is being...

Does Deposit Insurance Increase Banking System Stability? An Empirical Investigation

Based on evidence for 61 countries in 1980-97, this study finds that explicit deposit insurance tends to increase the likelihood of banking crises, the more so where bank interest rates are deregulated and the institutional environment is weak. Also, the adverse impact of deposit insurance on bank stability tends to be stronger the more extensive is the coverage offered to depositors, where the...

Deposit Insurance , Institutions and Bank Interest Rates

Many recent institutional reforms of the financial system have relied on the introduction of an explicit scheme of Deposit Insurance. This instrument aims at two main targets, contributing to systemic stability and protecting depositors. However it may also affect the interest rate spread in the banking system, which can be viewed as an indicator of market power in this financial segment. This ...