Deposit Insurance Reform Roundtable
Pricing (Title Slide)
Premium rates are at historic lows
The Deposit Insurance Fund Act of 1996
Most institutions pay nothing for deposit insurance
Concerns Raised by DIFA
Pricing Discussion Topics
Deposit Growth
Deposit Growth: Disparities among institutions
Risk Differentiation: Characteristics of 1 A-rated banks may differ slightly
Deposit concentrations have shifted
Risk Differentiation: Large institutions are engaged in more diverse activities
Spreads have widened and become more volatile at the largest institutions
Maintaining the Funds (Title Slide)
History of the BIF Fund Balance and Reserve Ratio
Why have insurance funds
Assessments as a Percentage of Bank Net Income
The Designated Reserve Ratio
Annual bank failures have fluctuated significantly
The volatility of deposit growth also affects the reserve ratio
Recent Volatility of the BIF Reserve Ratio
Systemic Risk Exception
Rebate Proposals
Insurance Coverage (Title Slide)
The real value of insured deposit coverage has declined
The 1980 Increase to $100,000
Increasing Coverage to $200,000
International Comparisons: Coverage Ratio to Per Capita GDP in 1999
