Deposit Insurance and Banking Efficiency

Abstract

The US banking system is facing its greatest challenges ever as it functions in an increasingly competitive and risky environment. Consequently, the topic of this discussion is particularly germane to American financial institutions, which no longer operate under interest-rate constraints, prohibitions against offering many types of services and products, or protection from non-bank competition. Our financial services industry now involves retailers and brokerage houses, as well as commercial banks, savings banks, savings and loan associations, credit unions, industrial banks, mortgage banks, and others, all competing for deposits and good loans.