Mid-sized US banks are asking regulators for help
a American Coalition of Medium Banks (MBCA) called on US regulators to extend deposit insurance for all of these institutions the next two years.
According to a report published by Bloomberg News, the remedy “I would stop running immediately” deposits from small banks, stabilizer banking sectorexcept restore confidence in the financial system.
the collapse of Silicon Valley Bankwhich held a large number unsecured deposits forced account holders to transfer their funds beyond the limit guaranteed by the FDIC (Federal Deposit Insurance Corp.); “Banks are too big to fail” and led to a strong selloff in banking stocks.
Also according to a report published by Bloomberg, the group proposed to expand the insurance program paid by the banks themselvesincreasing the deposit insurance rating for lenders who choose to participate in the greater coverage.
The letter from mid-sized US banks comes nearly a week after the bank collapsed Silicon Valley Bank. collapse tensions have escalated with the country’s regional banks, which have limited capacity to deal with rising interest rates.