The very same process that has ended deposit runs has made insured depositors--as in the 1980s with insolvent, risky thrifts--largely indifferent to the risks taken by their depository institutions because their  BIS Review 26/2002  1  funds are not at risk if their institution is unable to meet its obligations.
As a result, the market discipline to control risks that insured depositors would otherwise have imposed on banks and thrifts has been weakened. Relieved of that discipline, banks and thrifts naturally feel less inhibited from taking on more risk than they would otherwise assume.