The Legacy of Deposit Insurance: The Growth, Spread, and Cost of Insuring Financial Intermediaries
AbstractWithout the Great Depression, the United States would not have adopted deposit insurance. While the New Deal's anti-competitive barriers have largely collapsed become" deeply rooted. This paper examines how market and political competition for deposits raised the level of coverage and spread insurance to all depository institutions. A comparison of the cost of federal insurance with a counterfactual of an insurance-free system shows that federal insurance ultimately imposed a" higher cost but achieved political acceptance because of the distribution of the burden.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6063.
Date of creation: Jun 1997
Date of revision:
Publication status: published as Eugene N. White. "The Legacy of Deposit Insurance: The Growth, Spread, and Cost of Insuring Financial Intermediaries," in Michael D. Bordo, Claudia Goldin and Eugene N. White, editors, "The Defining Moment: The Great Depression and the American Economy in the Twentieth Century" University of Chicago Press (1998)
Note: DAE ME
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Other versions of this item:
- Eugene N. White, 1998. "The Legacy of Deposit Insurance: The Growth, Spread, and Cost of Insuring Financial Intermediaries," NBER Chapters, in: The Defining Moment: The Great Depression and the American Economy in the Twentieth Century, pages 87-122 National Bureau of Economic Research, Inc.
- N22 - Economic History - - Financial Markets and Institutions - - - U.S.; Canada: 1913-
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
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- Asli Demirguc-Kunt & Edward J. Kane & Luc Laeven, 2007.
"Determinants of Deposit-Insurance Adoption and Design,"
NBER Working Papers
12862, National Bureau of Economic Research, Inc.
- Demirgüç-Kunt, Asli & Kane, Edward J. & Laeven, Luc, 2008. "Determinants of deposit-insurance adoption and design," Journal of Financial Intermediation, Elsevier, vol. 17(3), pages 407-438, July.
- Demirguc-Kunt, Asli & Kane, Edward J. & Laeven, Luc, 2006. "Determinants of deposit-insurance adoption and design," Policy Research Working Paper Series 3849, The World Bank.
- Laeven, Luc, 2004.
"The political economy of deposit insurance,"
Policy Research Working Paper Series
3247, The World Bank.
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