A US regulator performed an overview of the nation’s deposit insurance system and options for reform amid recent failures in the banking industry.
The Federal Deposit Insurance Corporation (FDIC) released a comprehensive overview Monday of the deposit insurance system and options for reform to address financial stability concerns stemming from recent bank failures.
The report, “Options for Deposit Insurance Reform,” examined the role of deposit insurance in promoting financial stability and preventing bank failures, in addition to policies that may require changes to deposit insurance coverage.
The FDIC said it supports raising the deposit insurance limit for business payment accounts that are higher than the current $250,000 limit.
It advised offering unlimited coverage to extend unlimited deposit insurance coverage to all depositors.
The regulator, in addition, advocated offering different deposit insurance limits across account types, in which business payment accounts would receive higher coverage than other accounts.
The FDIC’s overview came after troubled First Republic Bank was closed by US regulators, while its assets are to be acquired by JPMorgan Chase.
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