This study examines the impact of deposit insurance coverage on credit union earnings opacity. For identification, we employ the provisions outlined in Section 136 of the Emergency Economic Stabilization Act, which raised the upper limit of deposit insurance coverage from $100,000 to $250,000. Using variation in insured deposits brought about by the differential impact of the change to deposit insurance arrangements and a difference-in-differences approach, we find that credit unions experiencing a substantial rise in insured deposits tend to exercise more discretion over loan loss provisions, leading to an increase in earnings opacity. This is most evident for small and medium sized credit unions.

中文翻译：

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存款保险和信用社收入不透明


本研究探讨了存款保险覆盖率对信用合作社盈利不透明的影响。为了进行识别，我们采用了《紧急经济稳定法案》第 136 条中概述的条款，该条款将存款保险覆盖范围的上限从 10 万美元提高到了 25 万美元。利用存款保险安排变化的不同影响所带来的受保存款变化和双重差分法，我们发现受保存款大幅增加的信用社往往对贷款损失准备金行使更大的自由裁量权，导致从而增加盈利不透明度。这对于中小型信用社来说最为明显。