We exploit an exogenous change in the coverage of insured deposits following the passage
of the Emergency Economic Stabilization Act (2008) to investigate the impact of deposit
insurance on the volume, composition and quality of credit union lending. Using a difference-
in-difference approach, we find changes in the volume, composition and riskiness of credit
union lending. Specifically, we find that affected credit unions increase total and unsecured
lending, leading to a decline in loan quality. Overall, our results suggest that an increase in …