Recent Changes in Handling Bank Failures and Their Effects on the Banking Industry
R. Alton Gilbert investigates whether the FDIC’s actions have induced uninsured depositors to shift their accounts to the relatively large banks that appear to be too large to be allowed to fail. There is no evidence of a shift of uninsured deposits from small to large banks. Instead, there has been a small rise in the share of large-denomination time deposits at relatively small banks in the past year.
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