The Mid-Size Bank Coalition of America has asked federal regulators to extend FDIC insurance to cover all deposits for the next two years. “Doing so will immediately halt the exodus of deposits from smaller banks, stabilize the banking sector and greatly reduce chances of more bank failures,” the group claimed. “It is imperative we restore confidence among depositors before another bank fails, avoiding panic and a further crisis.”
Preventing ‘Panic and Further Crisis’
The Mid-Size Bank Coalition of America (MBCA) has reportedly asked federal regulators to extend Federal Deposit Insurance Corporation (FDIC) insurance to all deposits for the next two years. The MBCA currently represents about 110 banks, including those with assets of about $100 billion.
In a letter to the FDIC, the Comptroller of the Currency (OCC), the Federal Reserve, and Treasury Secretary Janet Yellen, seen by Bloomberg News, the group explained:
Doing so will immediately halt the exodus of deposits from smaller banks, stabilize the banking sector and greatly reduce chances of more bank failures.
The recent failures of major banks, including Silicon Valley Bank and Signature Bank, have caused many depositors to withdraw their funds from regional banks and…
