The Mid-Size Bank Coalition of America (MBCA) has reportedly asked United States federal regulators to extend insurance on all deposits for the next two years.
According to a March 18 Bloomberg report, MBCA — a coalition of mid-sized U.S. banks — sent a letter to the U.S. Federal Deposit Insurance Corporation (FDIC) claiming that the extension of the insurance to “all deposits” was “the Stop Exodus immediately”. of deposits from smaller banks.
The MBCA also reportedly noted that this measure would “stabilize” the banking sector and significantly reduce the likelihood of “more bank failures.”
It added that the MBCA was proposing that the banks themselves fund the insurance program by raising the deposit insurance rating for lenders who choose to participate in the increased coverage.
This is an evolving story and more information will be added as it becomes available.
