FDIC recommends raising deposit insurance limit for business accounts after SVB, First Republic failures

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If businesses can’t meet payroll because their bank failed, that could have knock-on economic effects, regulators said after Silicon Valley Bank and First Republic Bank failed.

The Federal Deposit Insurance Corporation is recommending that lawmakers raise the cap on bank deposit insurance for business payroll accounts to help prevent future bank runs like those seen recently at Silicon Valley Bank and First Republic Bank.

The FDIC currently insures bank deposits up to $250,000 per account, regardless of whether the account is held by an individual, business or other entity.

 

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