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US mid-sized banks apply to FDIC for 2-year ‘all deposits’ insurance: report

The Medium Banks of America Coalition (MBCA) has reportedly asked US federal regulators to extend all deposit insurance for the next two years.

According to a March 18 Bloomberg report, the MBCA — a coalition of mid-sized US banks — sent a letter to the US Federal Deposit Insurance Corporation (FDIC), arguing that expanding insurance on “all deposits” would “immediately stop the outflow” of deposits at smaller banks.

He also noted that this action would “stabilize” the banking industry and significantly reduce the likelihood of “more bank failures.”

The report shows that the MBCA has proposed that the insurance program be funded by the banks themselves by raising the deposit insurance amount for lenders who choose to participate in the extended insurance coverage.

This is an evolving story and more information will be added as it becomes available.

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