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Working Paper

Deposit Insurance and the Cost of Capital

The impacts of deposit insurance and forbearance on the costs and value of uninsured deposits and equity capital are shown under three regimes.

Working Papers of the Federal Reserve Bank of Cleveland are preliminary materials circulated to stimulate discussion and critical comment on research in progress. They may not have been subject to the formal editorial review accorded official Federal Reserve Bank of Cleveland publications. The views expressed in this paper are those of the authors and do not represent the views of the Federal Reserve Bank of Cleveland or the Federal Reserve System.


Suggested Citation

Osterberg, William P., and James B. Thomson. 1987. “Deposit Insurance and the Cost of Capital.” Federal Reserve Bank of Cleveland, Working Paper No. 87-14.