An examination of contagious bank runs and a discussion of how private clearinghouses have protected against widespread bank failures, with the determination that federal deposit insurance may not be necessary to protect against runs; conclusion of February 1 issue.

An analysis of the costs and benefits of providing federal deposit insurance as a means of preventing widespread bank failures, and the role of bank regulators in assuring bank solvency; article concludes with February 15 issue.

Using a model for pricing deposit guarantees that treats the bank's investments as a portfolio of default-free bonds and risky loans, the authors push back uncertainty to the level of the borrowing firm and thus are able to explore how factors like firm leverage, loan maturity, and correlation...

An analysis of the collapse of the Rhode Island Share and Deposit Indemnity Corp., focusing on distinguishing the elements of failure that it shared with other large state-chartered deposit insurance funds (principally the Ohio and Maryland funds) from those that were unique to Rhode Island.

An investigation of the effects of interest rate and credit risk on optimal capital structure and investment decisions. The authors show that with no uncertainty in interest rates, capital regulation will reduce the risk of the bank's assets, but that under interest rate uncertainty, the impact...

An argument that information about the value of the deposit-insurance guarantee is available from market-generated data.

Most models of deposit insurance assume that the volatility of a bank's assets is exogenously provided. Although this framework allows the impact of volatility on bankruptcy costs and deposit insurance subsidies to be explored, it is static and does not incorporate the fact that equityholders...