No private insurer would ever be able to match the actual FDIC premium and cover its risks. A private insurer confronted with the possibility, remote as it may be, of losses that could bankrupt it would need to set especially high premiums to protect itself, premiums that few, if any, depository institutions would find attractive.
As one such indicator, the Bank has begun to release the “CPI for all items less fresh food and energy” on a monthly basis. While the rate of change in the core CPI has been at around 0 percent recently, that in the CPI for all items less fresh food and energy has risen to 1.2 percent lately (Chart 3).