The Mid-size Bank Coalition of America (MBCA) has reportedly asked the United States federal regulator to extend the insurance of all deposits for the next two years.
According to a March 18 Bloomberg report, MBCA – a coalition of mid-sized US banks – sent a letter to the US Federal Deposit Insurance Corporation (FDIC), asserting that extending “all deposit” insurance would “immediately stop the exodus” of deposits from small banks.
MBCA also reportedly noted that this action would “declare” the banking industry and reduce the possibility of “another bank failure.”
It is added that the MBCA proposes that the insurance program be funded by the banks themselves, by raising the deposit-insurance assessment for creditors who choose to participate in the increased coverage.
This is a developing story, and further information will be added as it becomes available.