A coalition of mid-sized US banks has urged US federal regulators to guarantee for two years all their customer deposits, even if they are above the usual guaranteed deposit limit of up to $250,000, to avoid "contagion" after the bankruptcy of Silicon Valley bank, reports "Bloomberg", quoted by BTA.

"This measure will immediately stop the outflow of customers of the smallest banks, stabilize the banking sector and greatly reduce the risks of other bankruptcies," said the appeal addressed to the regulatory authorities by the mid-sized banks of America.

The failures of Silicon Valley and Signature Banks created a crisis of confidence in the banking sector.

Many customers of peer banks withdrew their money to deposit it in larger banks, such as JP Morgan Chase or Bank of America, perceived as too big to be bailed out by the state in the event of a crisis.

UBS closes deal to buy Credit Suisse

Now in the US, deposits that are protected by the banking regulator are up to $250,000.

During the week, First Republic Bank, which mainly serves high-net-worth customers, experienced an 80 percent stock market crash.

Based in San Francisco, it is the 14th largest in the US by assets.

On Thursday, 11 major banks pledged to deposit $30 billion into First Republic's accounts.

"Whatever the overall state of the banking industry, confidence has been undermined for all but the largest banks," the coalition of mid-sized banks wrote in the letter.

She is calling on the banking regulator, the Federal Reserve Board and Treasury Secretary Janet Yellen to restore confidence.

The group of banks is proposing to finance the aforementioned measure by increasing the contributions it already pays to the banking regulator to guarantee deposits.

At the same time, it became clear that Warren Buffett's holding company, Berkshire Hathaway, held discussions with high-ranking representatives of the administration of US President Joe Biden regarding the banking crisis, Reuters reported, citing a source familiar with the matter.

bank deposits

American banks