United States midsize banks seek FDIC Insurance on ‘all deposits’ for 2 years: Report

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

The Mid-size Bank Coalition of America (MBCA) has reportedly requested United States federal regulatory authorities to extend insurance on all deposits for the following two years.

Reports by a March 18 Bloomberg report, the MBCA – a coalition of mid-size United States banks – sent a letter to the United States Federal Deposit Insurance Corporation (FDIC) asserting that extending insurance on “all deposits” would “ instantly halt the exodus” of deposits from smaller banks.

It likewise pointed out that this action would “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 join the increased coverage.

This is a developing story, and further information will be added as it becomes available.


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