FDIC Calls for Review of US Bank Deposit Insurance System

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The process is launching fresh debate over whether an expansion of government protections is appropriate. The Federal Deposit Insurance Corp. (FDIC) has published a comprehensive overview of the federal system this week, sparking debate once again regarding the need – or lack thereof – for additional government protections on bank deposits. The overview is also taking another look at how much additional coverage might be required. This review represents the third report the FDIC has published since the collapse of Silicon Valley Bank (SVB) and Signature Bank earlier this year.…

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Britain launches deposit insurance program review to boost confidence in banks

Deposit insurance - Bank of England

The Bank of England is looking into whether “improvements” need to be made to the program. The Bank of England (BoE) has stated that it is currently considering making “improvements” to the deposit insurance program that currently protects depositors who are customers of smaller banks. The coverage allows depositors at smaller banks to recover the money in their accounts if those banks fail. The country’s central bank has not yet released any details regarding what part of the deposit insurance program it is examining or what it is considering changing.…

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Lawmakers consider raising FDIC deposit insurance cap after SVB collapse

Deposit insurance - Money - Law

The Silicon Valley Bank collapse has some believing that $250,000 is not enough protection. Some lawmakers in the United States consider the Silicon Valley Bank collapse to be an eye-opening experience and are now tinkering with the idea of raising the Federal Deposit Insurance Corporation’s coverage cap of $250,000 in case of another catastrophic bank failure in the future. Raising the FDIC cap would provide greater protection to the customers of a failed bank. “I think that lifting the FDIC insurance cap is a good move,” said Senator Elizabeth Warren…

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