2003 Volume 15, No. 4

Options for Pricing Federal Deposit Insurance | HTML
by Eric P. Bloecher, Gary A. Seale, and Robert D. Vilim

The Federal Deposit Insurance Corporation has been exploring several options for reforming the risk-based deposit insurance system by more effectively differentiating risk among insured institutions. Each option involves trade-offs among a number of desirable attributes, since no one option possesses all of the attributes to the highest degree. This article describes the options under consideration and examines the trade-offs among them.

Evaluating the Vulnerability of Banks and Thrifts to a Real Estate Crisis | HTML
by Charles Collier, Sean Forbush, and Daniel A. Nuxoll

As part of its extensive off-site monitoring efforts, the Federal Deposit Insurance Corporation has evaluated banks’ and thrifts’ vulnerability to a real estate crisis similar to the crisis that occurred in New England in the early 1990s. This article discusses the resulting Real Estate Stress Test (REST) and current trends in REST ratings. That model indicates that a very large number of banks and thrifts in the West and the Southeast are heavily concentrated in commercial real estate.

Banking Review - 2003 - Vol. 15 No. 4, Full Edition
(271kb PDF File - PDF help or hard copy)

The views expressed are those of the authors and do not necessarily reflect official positions of the Federal Deposit Insurance Corporation. Articles may be reprinted or abstracted if the FDIC Banking Review and author(s) are credited. Please provide the FDIC's Division of Insurance and Research with a copy of any publications containing reprinted material.
Single-copy subscriptions are available to the public free of charge. Requests for subscriptions, back issues or address changes should be mailed to: FDIC Banking Review, Public Information Center, 801 17th Street, N.W., Washington, DC 20434.