Deposit insurance is inflationary

To have deposit insurance means that an institution cannot fail, their creditors will always be paid. To be immune from failure all that is required is deposit insurance, nothing more is needed. A downside exists to this guarantee otherwise we could protect everyone in the same way. It is not possible to provide this insurance and for banks not also to be able to inflate the money supply. Protecting failed businesses in this way (deposit insurance) is inflationary.