Washington, DC (PRWEB) May 24, 2012
The Independent Community Bankers of America (ICBA) today said that deposits in excess of $250,000 in noninterest-bearing transaction accounts, or “TAG” deposits, total $1.3 trillion in the first quarter, up from $893 billion in the same quarter a year ago, according to the FDIC Quarterly Banking Profile released today. If Congress fails to extend the FDIC “TAG” insurance program, these deposits would become uninsured on Dec. 31. Congress did modify and extend this successful insurance in 2010 through 2012 and must now consider another extension.
ICBA has been leading the charge to bring attention to this critical community bank and small business issue and will continue to urge Congress to act quickly so that the bank-funded insurance doesn’t lapse on Dec. 31.
“The FDIC Quarterly Banking Profile numbers show that TAG deposits comprise 15 percent of total domestic deposits. Policymakers should act expeditiously to continue this successful and important insurance,” said Camden R. Fine, ICBA president and CEO. “Community bankers nationwide are confident that a temporary extension of the TAG program is critical to help keep local deposits available in local banks to support small business lending, and job creation.”
ICBA continues to urge Congress to approve a temporary five-year extension of deposit insurance coverage for non-interest bearing transaction accounts through 2017. “Banks fully pay for this insurance through their normal deposit insurance premiums, so extending this program is a win-win for everyone on Main Street,” Fine said.
ICBA points out the following reasons why this coverage must be renewed for another five years:
For more information about extending full FDIC insurance for TAG deposits and ICBA, visit http://www.icba.org.
The Independent Community Bankers of America®, the nation’s voice for more than 7,000 community banks of all sizes and charter types, is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education and high-quality products and services. For more information, visit http://www.icba.org.
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