The Mid-Size Bank Coalition of America (MBCA) has reportedly asked United States federal regulators to extend all deposit insurance for another two years.
According to Bloomberg on March 18 messageMBCA – a coalition of mid-sized US banks – sent a letter to the US Federal Deposit Insurance Corporation (FDIC) arguing that extending the insurance to “all deposits” would “immediately stop the exodus” of deposits from smaller banks.
The MBCA also reportedly noted that the action would “stabilize” the banking industry and significantly reduce the chances of “more bankruptcies”.
It added that the MBCA proposed that the insurance program be funded by the banks themselves, by increasing the deposit insurance rating on lenders who choose to participate in the increased coverage.
This is a developing story and more information will be added as it becomes available.
