Deposit Insurance Funds

Analysis of Insurance Premium Disparity Between Banks and Thrifts Gao ID: T-AIMD-95-223 August 2, 1995

A potential premium rate disparity between banks and thrifts could develop in the next few months because the Federal Deposit Insurance Corporation (FDIC) reduced the premium rates that member institutions pay to the Bank Insurance Fund when the Fund reaches its target reserve level. This testimony summarizes an analysis of these issues found in a March 1995 GAO report (GAO/AIMD-95-84). This testimony also comments on the framework recently proposed by FDIC, the Office of Thrift Supervision, and the Treasury Department to deal with the impending premium rate disparity.



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