The American Bankers Association today shared a list of possible deposit insurance reforms with lawmakers ahead of a House Financial Services Committee hearing on the topic.
The committee will meet on Tuesday for a hearing on deposit insurance reform. In a statement, ABA noted that despite the historical success of the deposit insurance system, “there have been renewed questions in recent years about whether deposit insurance coverage levels are keeping pace with the needs of all depositors, whether the FDIC needs a more modern set of tools that allow swifter action to manage modern stress events, and whether there needs to be a more transparent process surrounding systemic risk determinations and special assessments.”
ABA shared a list of 10 recommendations for reforms developed by an ABA working group of more than 300 bankers. Only Congress can enact some of the recommendations while the FDIC can enact others. ABA noted that every option, including keeping the current system, “involves tradeoffs that must be acknowledged.”
Read a column by ABA Chair Kenneth Kelly outlining the 10 recommendations.
