The Federal Deposit Insurance Corporation (FDIC) released on Monday a comprehensive review of its deposit insurance framework to find possible reforms aimed at addressing financial stability issues arising from "recent bank failures."
The FDIC believes that, of the three options presented in the report, "targeted coverage" is the only one that complies with the deposit insurance objectives of financial stability and depositor protection in relation to its costs.
"The recent failures of Silicon Valley Bank and Signature Bank, and the decision to approve Systemic Risk Exceptions to protect the uninsured depositors at those institutions, raised fundamental questions about the role of deposit insurance in the United States banking system," FDIC Chairman Martin J. Gruenberg said.
