Skip to content
SVB Fallout

Midsize US Banks Ask FDIC to Insure Deposits for Two Years

  • Financial system risks more bank runs without aid, group says
  • Deposits have been moving into firms seen as too big to fail
Bloomberg business news
Historic Week of Bank Turmoil
Updated on

A coalition of midsize US banks asked federal regulators to extend FDIC insurance to all deposits for the next two years, arguing the guarantee is needed to avoid a wider run on the banks.

“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 Mid-Size Bank Coalition of America said in a letter to regulators seen by Bloomberg News.