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Rethinking Optimal Deposit Insurance

April 19, 2024

Organizers: Eduardo Dávila (Yale) and Itay Goldstein (Wharton)

Sponsored by the Tobin Center for Economic Policy and the Wharton Initiative on Financial Policy and Regulation

Deposit Insurance is the most significant explicit government guarantee to the financial sector. In the wake of the Silicon Valley, Signature, and First Republic Bank failures and the Systemic Risk Exception invoked by regulators, there have been multiple proposals to reform the deposit insurance system in the United States. To further our understanding of the trade-offs and considerations that shape the design of deposit insurance schemes, the Tobin Center for Economic Policy at Yale and the Wharton Initiative on Financial Policy and Regulation are convening a research conference titled “Rethinking Optimal Deposit Insurance.”


Friday, April 19

Time Title Presented by Discussant
8:30 - 9:00 AM Breakfast and Registration
9:00 - 10:40 AM Session 1: Deposit Insurance, Theory and Evidence
Session Chair: Steven Berry (Yale University)
9:00 - 9:50 AM Deposit Insurance, Bank Regulation, and Narrow Banking Stephen Williamson (University of Western Ontario) Todd Keister (Rutgers University)
9:50 - 10:40 AM “The Distortive Effects of Deposit Insurance on Bank Funding and Credit Allocation” Dominic Cucic (Danmarks Nationalbank), Rajkamal Iyer (Imperial College London), Sotirios Kokas (University of Essex), José-Luis Peydró (Imperial College London), Stefano Pica (Bank of Italy) Alexander Ufier (Federal Deposit Insurance Corporation)
10:40 - 11:10 AM Coffee Break
11:10 - 12:10 PM Panel Discussion: Optimal Deposit Insurance, New Perspectives for Policy
  Panelists: Eva Hüpkes (International Association of Deposit Insurers), Anil Kashyap (University of Chicago), Anna Kovner (Federal Reserve Bank of New York), Patrick Mitchell (Federal Deposit Insurance Corporation), Larry White (New York University)
  Moderator: Itay Goldstein (Wharton)
12:10 - 1:20 PM Lunch
1:20 - 3:00 PM Session 2: New Perspectives on Bank Deposits
Session Chair: Alp Simsek (Yale University)
1:20 - 2:10 PM “The Deposit Business at Large vs. Small Banks” Adrien d'Avernas (Stockholm School of Economics), Andrea L. Eisfeldt (University of California, Los Angeles), Can Huang (University of Illinois, Urbana-Champaign), Richard Stanton (University of California, Berkeley), Nancy Wallace (University of California, Berkeley) Ansgar Walther (Imperial College London)
2:10 - 3:00 PM “Bailing out (Firms') Uninsured Deposits: A Quantitative Analysis” N. Aaron Pancost (University of Texas, Austin), Roberto Robatto (University of Wisconsin, Madison) Kinda Hachem (University of Virginia/Federal Reserve Bank of New York)
3:00 - 3:30 PM Coffee Break
3:30 - 5:10 PM Session 3: Bank Fragility and Failure
Session Chair: Andrew Metrick (Yale University)
3:30 - 4:20 PM “Bank Fragility and the Incentives to Manage Risk” Toni Ahnert (European Central Bank), Christoph Bertsch (Sveriges Riksbank), Agnese Leonello (European Central Bank), Robert Marquez (University of California, Davis) Thomas Eisenbach (Federal Reserve Bank of New York)
4:20 - 5:10 PM “Failing Banks” Sergio Correia (Federal Reserve Board), Stephan Luck (Federal Reserve Bank of New York), and Emil Verner (Massachusetts Institute of Technology) Skander Van der Heuvel (Federal Reserve Board)