While the banking crisis has raised questions about whether the FDIC should guarantee higher deposit balances, some banks have already found ways to insure their customers’ deposits: the IntraFi Network and similar fintech solutions.
Massachusetts’ own Depositors Insurance Fund was a key tool in helping local banks reassure customers of the safety of their deposits while Silicon Valley Bank melted down last week. But its also lost some of the biggest names in local community banking in recent years.
Numerous local bank CEOs tried to allay depositors’ concerns this weekend that the collapse of Silicon Valley Bank could spell trouble for local lenders. They also had some extra help, in the form of Massachusetts’ own Deposit Insurance Fund.
A proposed merger between two funds that insure excess deposits at Massachusetts savings and cooperative banks could happen later this month.
After 85 years operating separately to insure deposits in Massachusetts banks, the state’s two insurance funds have decided to merge. The Depositors Insurance Fund and the Co-operative Central Bank see their proposed merger as a way to increase efficiencies.
