Abstract
The Federal Deposit Insurance Corporation Improvement Act (FDICIA) of 1991 is perhaps both the most important banking legislation since the Banking (Glass-Steagall) Act of 1933 and the most misunderstood. It represents the first attempt to reform the federal deposit-insurance system since the system’s inception almost 60 years ago. This chapter reviews the theory underlying how the act attempts to cure the adverse side effects of the current structure of deposit insurance, the major provisions of the act, and the barriers to its success.
An earlier draft was presented at the American Finance Association Annual Meeting in Anaheim, California on January 6, 1993. We are indebted to the participants at the session for their suggestions and comments.
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Benston, G.J., Kaufman, G.G. (1994). Improving the FDIC Improvement Act: What was Done and What Still Needs to be done to Fix the Deposit Insurance Problem. In: Kaufman, G.G. (eds) Reforming Financial Institutions and Markets in the United States. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-1404-2_7
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DOI: https://doi.org/10.1007/978-94-011-1404-2_7
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