Deposit Insurance Funds: Analysis of Insurance Premium Disparity Between Banks and Thrifts

Pursuant to a congressional request, GAO reviewed the Federal Deposit Insurance Corporation's (FDIC) proposed reduction of bank insurance premiums once the Bank Insurance Fund (BIF) is recapitalized, focusing on: (1) the likelihood, potential size, and timing of a premium rate differential between banks and thrifts; (2) the possible effects of the premium rate differential on the two industries; (3) the potential adverse effects on the Savings Association Insurance Fund (SAIF); and (4) various policy options to avoid a premium rate differential between BIF and SAIF members.