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The Mid-Size Bank Coalition of America has asked federal regulators to extend FDIC insurance to cover all deposits for the next two years. “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 group claimed. “It is imperative we restore confidence among depositors before another bank fails, avoiding panic and a further crisis.” Preventing ‘Panic and Further Crisis’ The Mid-Size Bank Coalition of America (MBCA) has reportedly asked federal regulators to extend Federal Deposit Insurance Corporation (FDIC) insurance to all deposits for the next two years. The MBCA currently represents about 110 banks, including those with assets of about $100 billion. In a letter to the FDIC, the Comptroller of the Currency (OCC), the Federal Reserve, and Treasury Secretary Janet Yellen, seen by Bloomberg News, the group explained: Doing so will immediately halt the exodus of deposits from smalle

A U.S. congressman has urged the federal government to temporarily insure every bank deposit in the country. Following the collapses of several major banks, he stressed that if the government does not do this, there will be a run on smaller banks. “This is a contagion that could be spread across the entire banking system,” he warned. Lawmaker Warns of Runs on Smaller Banks U.S. Congressman Blaine Luetkemeyer (R-MO), a former banker and a member of the House Financial Services Committee, said last week that the government should temporarily insure every bank deposit in the country. His statement followed the collapses of several major banks, including Silicon Valley Bank and Signature Bank . To prevent economic damage, the Biden administration and regulators guaranteed all deposits at the two banks, even those exceeding the $250,000 Federal Deposit Insurance Corporation (FDIC) deposit insurance limit. Noting that expanding the deposit guarantee would “give the system confidence,”