The Federal Deposit Insurance Corporation (FDIC) and the property/casualty insurance industry have both faced a considerable increase in concentration risk over the past several decades. Property/casualty insurance companies have attempted to address their increased exposure through reinsurance, using either conventional reinsurers or innovative market instruments. The article examines a number of issues the FDIC will face if it takes a similar approach to reducing its exposure to large-bank failure.
The authors summarize and discuss results of a Federal Deposit Insurance Corporation survey of foreign deposit insurance organizations. The article focuses on risk-assessment practices of these deposit insurance organizations.
This regular feature of the FDIC Banking Review contains information on regulatory agency actions, state legislation and regulation, and articles and studies pertinent to banking and deposit insurance issues.
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Chairman Donald E. Powell
Director, Division of Insurance and Research Arthur J. Murton