Mid-sized US banks seek FDIC insurance on ‘all deposits’ for 2 years: Report

The Mid-Size Bank Coalition of America (MBCA) has reportedly asked US 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-sized US banks – sent a letter to the US Federal Deposit Insurance Corporation (FDIC) claiming that extending insurance to “all deposits” would “immediately halt the exodus ” of deposits from smaller banks.

The MBCA also reportedly noted that this action would “stabilize” the banking industry and significantly reduce the chances of “more bank failures.”

It added that the MBCA proposed that the insurance program should be funded by the banks themselves by raising the deposit insurance assessment on lenders who choose to participate in the increased coverage.

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

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