TY  - JOUR
AB  - Here the author proposes the Mutual Insurance Model with Incentive Compatibility (MIMIC). MIMIC is a model for deposit insurance that mimics the incentives and practices of a private sector, mutual, insurance organisation. The main features of MIMIC are: fully risk‐based premiums, payments by the Federal Deposit Insurance Corporation (FDIC) to the US Treasury Department (the Treasury) for its line of credit and ‘catastrophe insurance’, rebates to banks when the reserve ratio exceeds a risk‐based ceiling, surcharges on banks when the reserve ratio dips below a risk‐based floor, dilution fees on deposit growth to maintain reserve ratio and refunds to banks to maintain reserve ratio when their deposits shrink.
VL  - 9
IS  - 4
SN  - 1358-1988
DO  - 10.1108/eb025087
UR  - https://doi.org/10.1108/eb025087
AU  - Wilcox James A.
PY  - 2001
Y1  - 2001/01/01
TI  - MIMIC: A proposal for deposit insurance reform
T2  - Journal of Financial Regulation and Compliance
PB  - MCB UP Ltd
SP  - 338
EP  - 349
Y2  - 2024/09/20
ER  -