Deposi 

Insurance

An

Annotated

Bibliography

1989–1999

Federal Deposi Insurance Corpora ion

Division o Research and Statistics

Washington, DC
DEPOSIT INSURANCE: AN ANNOTATED BIBLIOGRAPHY, 1989–1999 

First ublished by the Federal De osit Insurance Cor oration in 2000. 

This ublication may be obtained electronically via the Internet at: 

htt ://www.fdic.gov 

Requests for co ies of the ublication should be made through the FDIC’s Public Information Center, 801 17th Street, NW, Washington, DC 20434; tele hone (202) 416-6940 

or (800) 276-6003; or Email: ublicinfo@fdic.gov. 

ISBN 0-9661808-6-0 

Library of Congress Card Number: 00-105020 

ii FEDERAL DEPOSIT INSURANCE CORPORATION 
DEPOSIT INSURANCE: AN ANNOTATED BIBLIOGRAPHY, 1989–1999 

Foreword 

Financial crises over the ast 20 years have called attention to the global im ortance of 

maintaining strong and stable financial systems. Government rograms and olicies, 

such as de osit insurance, can be an im ortant art of that effort. 

Increasingly, countries around the world are looking to establish or strengthen their 

de osit insurance systems. In doing so, they are confronting issues that U.S. 

 olicymakers have faced for many years and, in some cases, still do. 

In Se tember 1998, the Federal De osit Insurance Cor oration (FDIC) held an 

international conference that focused on the olicy trade-offs inherent in any de osit 

insurance system. Fundamental olicy questions were considered, such as the ur ose 

and sco e of de osit insurance coverage. We discussed o erational issues with olicy 

im lications as well, such as the cost to the industry of insurance coverage and the 

dis osition of failed-bank assets. 

As a result of the conference, we realized there was a ressing need for a reference guide 

to "best ractices" among existing de osit insurance rograms. This annotated 

bibliogra hy is a com rehensive com ilation of research on de osit insurance issues. It 

can be a reference tool for the establishment and o eration of a credible de osit insurance 

system. Anyone interested in these issues—researchers, olicymakers, and 

 ractitioners—will find it hel ful. 

I want to thank the staff of the FDIC Division of Research and Statistics and the FDIC 

Library for the tremendous effort they ut into making this bibliogra hy a noteworthy 

research tool for years to come. 

DONNA TANOUE 

Chairman 

Division of Research and Statistics iii 
 

 

 

 

DEPOSIT INSURANCE: AN ANNOTATED BIBLIOGRAPHY, 1989–1999 

 cknowledgments 

This bibliogra hy was com iled by Kenneth D. Jones and Angela Lengyel of the 

Division of Research and Statistics. Su ervisory direction was rovided by Detta 

Voesar. 

The com ilers are indebted to Alicia Amiel, Reference Librarian, whose contributions to 

the search rocess were instrumental, and to Jane Lewin, for her editorial work. 

Gratitude also is due Ellen K. Schenkelberg and Nicole A. Kim, who assisted with library 

searches, translations, and writing abstracts. Iris Savoy rovided secretarial assistance. 

Hel ful comments on drafts of the manuscri t were rovided by Lee Davison, James 

Marino, John O'Keefe, and Steven Seelig. Geri Bonebrake created the cover design and 

arranged the age layout. 

iv FEDERAL DEPOSIT INSURANCE CORPORATION 
 

 

 

 

 

 

 

DEPOSIT INSURANCE: AN ANNOTATED BIBLIOGRAPHY, 1989–1999 

Preface 

Much has been written on the to ic of de osit insurance. This bibliogra hy has been 

com iled to assist researchers, olicymakers, ractitioners, and others in more efficiently 

searching through the voluminous amount of rinted information available on the subject 

of de osit insurance. By making this literature more accessible, we ho e to stimulate 

additional research on issues of ongoing concern in the field of de osit insurance. 

Scope 

The bibliogra hy is as inclusive as ossible. It contains over 700 books, journal articles, 

working a ers, doctoral dissertations, conference roceedings, congressional hearings 

(witnesses are named), and government and international agency re orts—nearly 

everything that was ublished between 1989 and 1999 on the to ic of de osit insurance. 

To be included in this bibliogra hy, a substantial ortion of each work had to focus on 

de osit insurance. For the most art, the bibliogra hy does not include news a er and 

trade ublication articles, master's theses, or individual s eeches or testimonies. Selected 

older materials deemed articularly relevant to the issues at hand are also included. An 

attem t has been made to list only the most recent version of a a er and to exclude 

earlier versions that may have also been resented or ublished; however, the earlier 

versions are sometimes identified at the entry for the most recent version. 

Researchers and other users of the bibliogra hy should note the date of an entry's 

 ublication. The United States, after suffering through the savings & loan and banking 

crises of the 1980s and early 1990s, reformed its de osit insurance system—one of the 

world’s oldest and most successful—in the early 1990s. Much of the work written before 

1991 deals with roblems of the re-reform U.S. system. Most of the material is still 

highly relevant, however, because it discusses many of the weaknesses inherent in 

de osit insurance systems and rovides a thorough analysis of the olicy trade-offs 

associated with the numerous reforms recommended. Pre-reform material also allows the 

user to follow the reform rocess from identification of the roblem through olicy 

analysis, recommendation, formulation, enactment, and ost-reform evaluation. In 

res onse to this natural break in the literature, we have se arated entries dealing 

s ecifically with reform issues into two cha ters that corres ond to the re-reform and 

 ost-reform eriods. 

Titles included in the bibliogra hy were obtained using a variety of on-line databases, 

library collections, bibliogra hies, indices, and individual Web sites. On-line databases 

used for this com ilation included the following: Econlit, ProQuest, Dialog, First Search, 

Carl Uncover, Dissertation Abstracts Online, Fed-in-Print, Lexis-Nexis, Westlaw, and the 

Library of Congress' Online Catalog. Hard-co y indices used included the Readers 

Guide to Periodical Literature, the Banking Literature Index, World Banking Abstracts, 

and the Business Periodicals Index. Des ite our best efforts, we are certain to have 

missed some im ortant titles. Users of the bibliogra hy are encouraged to bring these 

oversights to our attention. In addition, for some entries we were not able to include 

Division of Research and Statistics v 
 

 

 

 

 

 

 

DEPOSIT INSURANCE: AN ANNOTATED BIBLIOGRAPHY, 1989–1999 

abstracts because we were unable to obtain hysical or electronic co ies of the items. 

Efforts to obtain these materials will continue. 

A angement of Ent ies/O igin of Abst acts 

The titles in this bibliogra hy are arranged by subject area. The subject areas themselves 

reflect to ics that a eared to receive articular attention in the de osit insurance 

literature, and each title was laced within the subject area to which it was deemed to 

make the greatest contribution. The entries within each subject area are arranged 

al habetically by author’s (or editor’s) last name or by title if no author or editor was 

given. For multi le entries by the same author, the titles written by the author alone are 

listed first. Works edited by the same author a ear next, with co-authored ublications 

listed last. 

Most abstracts are ara hrases of the original authors' own descri tions of their works; 

minor modifications have been made, mostly to correct for voice and tense. The intent of 

the abstracts is to rovide users with sufficient information to determine the entry's 

relevance. No subjective o inions about the quality or worth of the entry have been made 

or will be offered. In addition to our own abstracts, Econlit and the Academic Press have 

graciously allowed us to re rint a significant number of abstracts from their co yright-

 rotected collections; re rints are indicated by the co yright notice given at the end of 

each such abstract. 

Obtaining Copies of Wo k Cited 

Sources cited in this bibliogra hy can be obtained through academic, government, or 

institutional libraries using standard interlibrary loan rocedures. Contact the librarians 

at these institutions for further assistance. 

On-Line Access 

This bibliogra hy is available via the Internet on the FDIC’s home age located at 

htt ://www.fdic.gov. Both a rinter-friendly Portable Document Format (PDF) file, and 

a searchable HTML version, are available at this address. Search and rinting 

instructions are rovided at the site. 

Updates 

We ex ect the on-line version of this de osit insurance bibliogra hy to be u dated 

annually beginning in the year 2001. The hard-co y version will be u dated and 

distributed less frequently. 

KENNETH D. JONES 

Financial Economist 

ANGELA LENGYEL 

Research Assistant 

vi FEDERAL DEPOSIT INSURANCE CORPORATION 
 

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DEPOSIT INSURANCE: AN ANNOTATED BIBLIOGRAPHY, 1989–1999 

Contents 

Fo ewo d iii 

Acknowledgments iv 

P eface v 

Ac onyms viii 

1. General Deposit Insurance Theory and Policy 1 

2. Designing and Establishing Deposit Insurance Systems 15 

3. Pricing and Valuation of Deposit Insurance 24 

4. Regulation and Supervision of Insured Depository Institutions 41 

5. Role of Deposit Insurance in Bank Failures 57 

6. Economics of Deposit Insurance 81 

7. Deposit Insurance and Moral Hazard, Risk, and Incentives 111 

8. Safety Nets, Deposit Insurance, and Subsidies 127 

9. Country- or Region-Specific 135 

10. Deposit Insurance Reform in the United States: Pre-FDICI 162 

11. Deposit Insurance Reform in the United States: Post-FDICI 186 

12. Legal spects of Deposit Insurance 204 

13. Too Big to Fail 209 

14. FDIC- dministered Insurance Funds 217 

 uthor Index 223 
 

 

 

DEPOSIT INSURANCE: AN ANNOTATED BIBLIOGRAPHY, 1989–1999 

 cronyms 

BIF Bank Insurance Fund 

BIS Bank for International Settlements 

CEC Commission of the Euro ean Community 

EC Euro ean Community 

ECU Euro ean Currency Unit 

EU Euro ean Union 

FDIC Federal De osit Insurance Cor oration 

FDICIA Federal De osit Insurance Cor oration Im rovement Act of 

1991 

FIRREA Financial Institutions Reform, Recovery, and Enforcement 

Act of 1989 

FSLIC Federal Savings and Loan Insurance Cor oration 

GAO General Accounting Office 

IMF International Monetary Fund 

NAFTA North American Free Trade Agreement 

RFC Reconstruction Finance Cor oration 

RTC Resolution Trust Cor oration 

OMB Office of Management and Budget 

S&Ls Savings and Loan Associations 

SAIF Savings Association Insurance Fund 

TBTF Too Big to Fail 

viii FEDERAL DEPOSIT INSURANCE CORPORATION