United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office Accounting and Information Management Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1995-03-23 monographic deposited born digital GA 1.13:T-AIMD-95-111 https://www.govinfo.gov/app/details/GAOREPORTS-T-AIMD-95-111 P0b002ee180393735 f:tai95111 DGPO 2010-08-12 2011-03-24 GAOREPORTS-T-AIMD-95-111 machine generated eng fdlp REPORT GAOREPORTS-T-AIMD-95-111 T-AIMD-95-111 Funds management Insured commercial banks Bank failures Insurance premiums Financial institutions Trust funds Savings and loan associations Capital Bank deposits Interest rates Bank Insurance Fund Savings Association Insurance Fund BIF SAIF Testimony AIMD Congress, regulators, and others have expressed concern that a significant insurance premium disparity between banks and thrifts could arise when the Federal Deposit Insurance Corporation lowers bank premiums once the Bank Insurance Fund is fully recapitalized. It is expected that thrift premiums could be as much as five times greater than bank premiums because thrift premiums would have to remain higher to fully capitalize the Savings Association Insurance Fund. Also, higher thrift premiums will be needed to pay interest on bonds issued to help pay for resolving the thrift crisis that developed in the 1980s. Concerns have been raised that high premiums would place thrifts at a competitive disadvantage with banks. This testimony (1) discusses the likelihood, the potential size, and the timing of a premium rate differential between banks and thrifts; (2) analyzes possible effects of the premium rate differential on the two industries; (3) assesses potential adverse effects on the Savings Association Insurance Fund's viability; and (4) identifies ways to avoid or mitigate problems that the premium rate differential may create. https://www.govinfo.gov/content/pkg/GAOREPORTS-T-AIMD-95-111/html/GAOREPORTS-T-AIMD-95-111.htm GAO/T-AIMD-95-111 https://www.govinfo.gov/app/details/GAOREPORTS-T-AIMD-95-111 Testimony GAO/T-AIMD-95-111; Deposit Insurance Funds: Analysis of Insurance Premium Disparity Between Banks and Thrifts; Funds management Insured commercial banks Bank failures Insurance premiums Financial institutions Trust funds Savings and loan associations Capital Bank deposits Interest rates Bank Insurance Fund Savings Association Insurance Fund BIF SAIF