2023 Options for Deposit Insurance Reform | i

Table of Contents

Section 1: Executive Summary......................................................................................................... 1

Section 2: Introduction and Background ......................................................................................... 5

Introduction............................................................................................................................................ 5

Background............................................................................................................................................. 6

Section 3: History of Deposit Insurance in the U.S...........................................................................13

The History of FDIC Insurance Coverage Limits .................................................................................. 13

The Transaction Account Guarantee Program .................................................................................... 16

Composition of Deposits ..................................................................................................................... 19

History of Uninsured Depositor Losses ............................................................................................... 21

What’s Different Today?........................................................................................................................ 22

Section 4: Objectives and Possible Consequences of Deposit Insurance..........................................25

Objectives ............................................................................................................................................. 25

Possible Consequences ....................................................................................................................... 29

Section 5: Tools to Support Objectives and Address Possible Consequences...................................33

Bank Regulation and Supervision ....................................................................................................... 33

Deposit Insurance Pricing .................................................................................................................... 35

Fund Adequacy ..................................................................................................................................... 39

Section 6: Options for Increased Deposit Insurance Coverage .........................................................41

Limited Coverage.................................................................................................................................. 41

Unlimited Coverage.............................................................................................................................. 44

Targeted Coverage................................................................................................................................ 46

Excess Deposit Insurance Coverage..................................................................................................... 49

Additional Options................................................................................................................................ 51

Section 7: Conclusion .....................................................................................................................55

References .....................................................................................................................................57