US midsize banks seek FDIC Insurance on 'all deposits' for 2 years

03/19 03:08

According to Cointelegraph, the Mid-Size Bank Coalition of America (MBCA) has asked United States federal regulators to extend insurance on all deposits for the next two years. The MBCA – a coalition of mid-size U.S. banks – sent a letter to the U.S. Federal Deposit Insurance Corporation (FDIC), asserting that extending insurance on "all deposits" would “immediately halt the exodus” of deposits from smaller banks. The MBCA also noted that this action would “stabilize” the banking industry and significantly decrease the chances of “more bank failures.” It was added that the MBCA proposed the insurance program be funded by the banks themselves, by raising the deposit-insurance assessment on lenders who opt to participate in the increased coverage.
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