Reforming deposit insurance by eliminating it altogether and using a mark-to-market accounting can be advantageous in the sense that

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Eliminating deposit insurance and using mark-to-market accounting can provide advantages such as regulators only needing to monitor bank capital after all assets and liabilities are properly marked to market (option B) and banks can be quickly closed down when the capital is low but still positive (option C). However, it does not necessarily mean that the banking industry will not be prone to failure (option A), as there are still other factors that can contribute to bank failures, such as macroeconomic conditions and management decisions. Therefore, options B and C remain as the most suitable choice.

Reforming Deposit Insurance by Eliminating It Altogether and Using a Mark-To-Market