The banking industry has been facing risks from uninsured deposit withdrawals, with almost 190 banks at a potential risk of impairment to insured depositors and potentially $300 billion of insured depositors at risk, as revealed by economists’ analysis. In the meantime, Representative Tom Emmer has warned the FDIC that its actions to purge legal crypto activity from the US are “deeply inappropriate” and could lead to broader financial instability. Furthermore, the US Federal Reserve announced a review of the supervision and regulation of Silicon Valley Bank in light of its failure, which will be released for public review by May 1.
The MBCA’s request to extend deposit insurance is aimed at reducing the risk of bank failures, which could potentially harm the entire banking industry. The proposal to fund the insurance program by raising deposit-insurance assessment on lenders who opt to participate in the increased coverage is a…
