New Research on Today's Deposit Insurance System Released by ASI and ESI

DUBLIN, Ohio, June 10, 2026 /PRNewswire/ -- American Share Insurance (ASI) and Excess Share Insurance (ESI) are pleased to release a new study by Glenn Grossman, Professor of Finance and Entrepreneurship at Grace College. The report examines the evolution of deposit insurance in the United States and explores whether a system created during the Great Depression remains the best fit for today's financial marketplace.

The study also highlights that private deposit insurance is a proven and longstanding alternative to the federal model. Available to state-chartered credit unions in ten states, private insurance has existed for more than 50 years. Since 1974, ASI has continuously protected member deposits, demonstrating the durability and effectiveness of a private, market-based approach to deposit insurance. The report comes as policymakers and industry stakeholders continue to evaluate the future of deposit insurance following the 2023 bank failures, growth in uninsured deposits, and renewed discussions around expanding federal coverage.

The study further highlights ASI's model as an example of how disciplined underwriting, independent oversight, and strong capital standards can support a resilient deposit insurance framework. The report notes that privately insured credit unions maintain strong capital positions and operate under a dual oversight structure that includes both state regulatory supervision and independent monitoring by ASI.

"The risk profile of depository institutions today differs from that of a century ago. Moreover, the capacity to offer private deposit insurance that effectively addresses known risks and supports financial stability now far surpasses that of earlier private insurance programs," says Grossman. To read the full study, click here.

The report concludes that private deposit insurance should be recognized as a viable and proven component of the nation's deposit insurance system. By providing states and credit unions with an additional option, private insurance promotes choice, innovation, and financial accountability while maintaining confidence in insured deposits. Private deposit insurance is not a retreat from safety but a modern, market-based approach to protecting consumers and strengthening financial stability.

About American Share Insurance (ASI)
American Share Insurance is a member-owned share guaranty corporation licensed by the Ohio Department of Insurance and dual regulated by the Ohio Departments of Insurance and Commerce. The corporation provides up to $250,000 of share insurance on each account of an individual member of an insured credit union. For more information, call 800.521.6342 or visit us online at AmericanShare.com.

About Glenn Grossman
Glenn Grossman is a professor of Finance and Entrepreneurship at Grace College (Winona Lake, IN). Professor Grossman has over 25 years of experience in the banking and payments sector. His research interests include deposits, electronic payments, and small business finance. Before entering higher education, Grossman was the director of research for Cornerstone Advisors and a principal consultant with FICO. Additionally, he served as the product leader for a start-up fintech payments firm. He started his career in the financial services industry, managing product innovation and payment strategy at Bank of America. He also served as an economist with the U.S. Department of Labor–Bureau of Labor Statistics.

SOURCE American Share Insurance