The Federal Deposit Insurance Corporation Improvement Act of 1991

Question

Quizplus · Accepted Answer

The Federal Deposit Insurance Corporation Improvement Act of 1991 authorized risk-based deposit insurance premiums, which meant that banks could be charged different amounts for deposit insurance premiums based on their level of risk. This was a significant change from the previous flat-rate system. The act did not eliminate the too-big-to-fail doctrine, introduce a system of coinsurance, or abolish the FSLIC (which had already been abolished in 1989).