FDIC Reveals How Deposit Insurance Regime Could Change After Bank Crashes

  • The Federal Deposit Insurance Corporation, also known as the FDIC, recommended increasing the size of insured bank deposits for certain account types, a move which would follow the recent collapse of three major financial institutions.
  • First Republic Bank imploded on Monday after Silicon Valley Bank and Signature Bank collapsed in early March; all three companies had a majority of clients with account balances well above the $250,000 threshold insured by the FDIC, prompting the government-backed corporation to secure insured and uninsured deposits at the two latter institutions to decrease the risk of bank runs at other firms.
  • The FDIC issued a report on Monday which voiced support for “targeted coverage” such that business accounts can receive far higher insurance limits.
Go back home

Sign Up for Our Newsletter

Join our list!

Sign up here to get our daily newsletter with the top trending headlines.