Medium-sized banks in the US require FDIC insurance for all deposits for 2 years.
ABDIn these days when the banking sector was turbulent in Turkey, medium-sized banks made a request from the regulator. Banks think that with these requests, more potential bank performances will be prevented.
Midsize Banks in the US Request Insurance from the FDIC for All Their Deposits
Midsize Bank Coalition of America (MBCA), reportedly asking United States federal regulators to extend insurance on all deposits over the next two years.
The banking coalition is known to think this will bring stability to the banking sector, in a letter to federal regulators. Additionally, he argues, this will reduce the likelihood of “more bank failures.”
A coalition of midsize US banks, according to a Bloomberg report. MBCAto the US Federal Deposit Insurance Corporation (FDIC) sent a letter. In the letter sent, he claimed that extending the insurance on all deposits would immediately stop the outflows.
MBCA also said that this action will stabilize the banking sector and significantly reduce the chances of further bank failures.
MBCAIt was added that ‘s proposed that the insurance program be financed by the banks themselves, raising the assessment of deposit insurance for lenders who choose to participate in increased coverage.
A recent analysis by economists published on March 13 showed that 186 more banks were in the same position as Silicon Valley Bank. The report revealed that although only half of uninsured depositors decided to withdraw, nearly 190 banks were at potential risk of impairment for insured depositors.
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