HFS Members Ask for More Information on Possible Deposit Insurance Reforms

House Financial Services Committee members Dan Meuser (R-PA) and Blaine Luetkemeyer (R-MO) asked the FDIC to better assess the potential risks and costs associated with proposed reforms to the deposit insurance system.

In a Letter addressed to FDIC Chair Martin J. Gruenberg, the legislators posed a series of questions to determine the impact of three deposit insurance reform options considered by the FDIC in a report titled Options for Deposit Insurance Reform. In the Report, the FDIC evaluated the limitations of the current deposit insurance system and found that the current system of "Limited Coverage" may be insufficient to prevent bank runs (see previous coverage). The legislators requested information on "the potential impact on the Deposit Insurance Fund (DIF), the influence on average assessment rates, strategies for business payment account coverage, exclusions for community banks, and measures to manage potential asset market disruptions."