generations, even if the underlying productivity risk is small or zero. We conclude that a joint policy package of orderly default …

, but 87 percent of banks and savings institutions that were part of the Federal Deposit Insurance Corporation (FDIC) system … competitiveness of U.S. banking. Unlimited deposit insurance increases moral hazard, and the historical evidence suggests that … unlimited deposit insurance increases the likelihood of banking crises. The transaction account guarantee also is unnecessary …

Using evidence from Russia, we explore the effect of the introduction of deposit insurance on bank risk. Drawing on … variation in the ratio of firm deposits to total household and firm deposits before the announcement of deposit insurance, so as … to capture the magnitude of the decrease in market discipline after the introduction of deposit insurance, we demonstrate …