The US Midsize Banking Alliance requires the FDIC to provide two-year insurance for all deposits

On March 20th, the US Midsize Banking Alliance sent a letter to the US Treasury, the Federal Deposit Insurance Corporation, the Office of the Comptroller of Currency, and the Federal Reserve, requesting that the insurance coverage of the Federal Deposit Insurance Corporation (FDIC) be extended to all deposits in the next two years, with the relevant costs borne by the banks themselves. In its letter, the organization stated that expanding insurance coverage could immediately prevent a significant outflow of deposits from smaller banks and prevent more bank closures. The organization said that the recent banking turmoil has caused people to lose confidence in all banks except large banks, and it is necessary to immediately restore market confidence in the entire banking system.

Interpretation of this information:

The US Midsize Banking Alliance is advocating for the extension of the insurance coverage of the Federal Deposit Insurance Corporation (FDIC) to include all deposits in the next two years. The organization believes that this move would immediately prevent a significant outflow of deposits from smaller banks and prevent more bank closures. There has been an erosion of confidence in all banks except for large ones due to recent banking turmoil, and restoring market confidence in the entire banking system is necessary. The costs of this extension would be borne by the banks themselves.