Mid-size US banks ask govt to protect all deposits

The Mid-Size Bank Coalition of America urges federal regulators to guarantee members' customer deposits to avoid fallout from Silicon Valley Bank's collapse. – Facebook pic, March 19, 2023.

A COALITION of mid-sized United States banks has asked federal regulators to guarantee all of their customers’ deposits for two years, even above the usual US$250,000 limit (RM1.12 million), to avoid contagion after Silicon Valley Bank’s (SVB) collapse, Bloomberg reported yesterday. 

The measure would “immediately halt the exodus of deposits from smaller banks, stabilise the banking sector and greatly reduce chances of more bank failures”, the Mid-Size Bank Coalition of America argued in a letter to authorities, said the report.

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