There is little likelihood of any changes being made to the U.S. deposit insurance system in the foreseeable future as interest among lawmakers has waned since the bank failures earlier this year, FDIC Chairman Martin Gruenberg said today.
Speaking at a conference in Boston, Gruenberg highlighted an FDIC report from May on possible deposit insurance reforms, which was drafted in response to Silicon Valley Bank and Signature Bank failures. The agency concluded that a “targeted” deposit insurance system in which additional coverage would be extended to business payment accounts would be the best option for balancing financial stability and depositor protection relative to its costs. However, Gruenberg noted that any changes would require legislation, and lawmakers have not expressed much interest in further exploring the topic.
“While there was considerable interest in the immediate aftermath of the bank failures earlier this year, that has dissipated with time,” Gruenberg said. “At this point, there does not seem to be any imminent likelihood of changes to deposit insurance coverage in the U.S.”