Table 37. CHANGE IN ACCOUNTS FULLY PROTECTED AND DEPOSITS INSURED BY RAISING THE COVERAGE TO $25,000 OR TO ALL DEPOSITS, COMPARED WITH CHANGE IN COVERAGE FROM $5,000 TO $10,000 DATA FOR SEPTEMBER 19, 1951: ALL INSURED BANKS GROUPED BY AMOUNT OF DEPOSITS, POPULATION OF CENTER, AND CLASS; AND ACCOUNTS GROUPED BY TYPE Amount of deposits Not insured with $10,000 coverage which would be insured with coverage of Partially protected coverage which protected with coverage of protected Not in- The reports for September 19, 1951, indicate that over three million additional accounts were brought under full protection by increasing the coverage from $5,000 to $10,000. An increase in coverage to $25,000 would add over a million accounts, and full insurance coverage less than two million accounts, to those fully protected under the present coverage of $10,000 for each depositor. The effect of raising the insurance coverage is more striking for the amount of insured deposits than for the number of accounts fully protected. With $10,000 coverage about $14 billion of deposits were insured which would have been uninsured with $5,000 coverage. Raising the coverage to $25,000 would increase the amount of insured deposits by another $14 billion, while coverage of all deposits would mean an increase in insured deposits of $78 billion over the amount insured with the $10,000 maximum. The distribution by type of account of deposits which would become insured under coverage of $25,000 or coverage of all deposits differs considerably from the distribution of the deposits that were insured with $10,000 coverage but would not have been insured with $5,000 coverage. Of the $14 billion of deposits insured with the $10,000 coverage but not with $5,000 coverage, nearly $5 billion was in savings and time accounts, nearly $8 billion in demand accounts of individuals, partnerships and corporations, and $1 billion in other types of account. Of the $14 billion of deposits that would become insured if coverage were increased to $25,000, less than $2 billion would be in savings and time accounts and nearly $10 billion in demand accounts of individuals, partnerships, and corporations. Chart U. ACCOUNTS FULLY PROTECTED AND DEPOSITS INSURED WITH MAXIMUM COVERAGE FOR EACH DEPOSITOR OF $5,000, $10,000, $25,000, AND ALL DEPOSITS, ALL INSURED BANKS, SEPTEMBER 19, 1951 Table 38 gives the amount and percentage of deposits which would be insured, with an insurance maximum of $25,000 or of all deposits, in comparison with those under the present maximum of $10,000. These data are shown for all insured banks and for the same groups of banks and accounts as in the preceding table. The percentages for all insured banks are shown in Chart U, and also similar percentages had the maximum coverage been $5,000. Table 38. DEPOSITS INSURED WITH COVERAGES FOR EACH DEPOSITOR OF ALL INSURED BANKS GROUPED BY AMOUNT OF DEPOSITS, POPULATION A change in coverage to $25,000 for each depositor would increase the proportion of all deposits insured from 54.3 to 62.5 percent. The effect of such an increase would be relatively greater in the larger banks than in the smaller banks, and in banks in large cities than in those in smaller places. It would be much more important in commercial banks than in mutual savings banks, and far more important for deposits in demand accounts than for those in savings and time accounts. These differences in the impact of raising the insurance coverage would be even more striking with an increase in coverage to all deposits. CHANGING DISTRIBUTIONS OF INSURED BANKS AND THEIR ACCOUNTS AND DEPOSITS, 1934 тo 1951 The data reported by insured banks for the special calls provide information regarding the distribution of banks and of their accounts and deposits that is not elsewhere available. A comparison of these distributions at the special call dates since the beginning of deposit insurance reveals trends in the operations of the banking system which are not shown by information derived from any other source. Since 1934 there has been a large shift in the distribution of all banks and of insured banks by size, as measured by the amount of their deposits. The extent of this shift, as recorded at the seven special call dates from 1934 to 1951, is shown in Table 39, particularly by the contrast between the distributions in 1934 and in 1951. Table 39. NUMBER AND PERCENTAGE DISTRIBUTION OF INSURED Banks, SPECIAL CALL DATES, 1934 TO 1951 ALL INSURED BANKS GROUPED BY AMOUNT OF DEPOSITS AND CLASS In 1934 more than 75 percent of the banks had deposits of $1 million or less, and only 5 percent had deposits of more than $5 million. In 1951 only 17 percent had deposits of $1 million or less and 28 percent had more than $5 million of deposits. Chart V shows the total number of accounts, the number per 100 population, and the average size of account for each of the special call dates from 1936 to 19511. Chart V. TOTAL NUMBER OF ACCOUNTS, ACCOUNTS PER 100 POPULATION, AND TO 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 ACCOUNTS PER 100 POPULATION 1949 1950 1951 80 60 40 20 T 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 AVERAGE SIZE OF ACCOUNT $1500 -20 AVERAGE SIZE 1250 1000 750 500 250 Ог 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1250 1000 750 500 250 1 In October 1934, insured banks reported the amount of their insured deposits, and the number of depositors. Accounts belonging to a single depositor in the same right and capacity were combined, so that the total number of accounts was not obtained. |