This week’s American Bankers Association announcement that it will join the ICBA-led push for extending full FDIC coverage of noninterest-bearing transaction accounts is welcome news indeed. We at ICBA are happy that ABA has joined us in actively working to extend the transaction account guarantee (TAG) coverage for all banks.
ICBA has been working with both the regulatory agencies and Congress for many months on this critical issue for community banks—especially community banks in the economically hardest-hit areas of our nation. Community banks must operate in the free market with no balance sheet guarantees or perceptions of too-big-to-fail government support.
Accordingly, until the nation’s economy is on a strong growth path, TAG coverage of business and municipal accounts is vital to the deposit and loan stability of community banks. We look forward to ABA joining the campaign to extend TAG coverage. And with just nine legislative days until the August congressional recess, we encourage all community bankers to make their voices heard as well.