US midsize banks seek FDIC Insurance on ‘all deposits’ for 2 years: Report
The banking coalition reportedly argued that it would bring stability to the banking industry and reduce the chances of “more bank failures,” in a letter to federal regulators.
The Mid-size Bank Coalition of America (MBCA) has reportedly asked United States federal regulators to extend insurance on all deposits for the next two years.
According to a March 18 Bloomberg report, 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.
It also noted that this action will “stabilize” the banking industry and significantly decrease the chances of “more bank failures.”
The report revealed 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.
This is a developing story, and further information will be added as it becomes available.