WASHINGTON, D.C.—Shayna Olesiuk, Director of Banking Policy, issued the following statement on the filing of Better Markets’ Comment Letter to the Federal Deposit Insurance Corporation (FDIC) in response to a Request for Information (RFI) regarding information on the characteristics of and data collection related to bank deposits.

“The March 2023 regional bank failures provided clear evidence of the risks associated with uninsured deposits. That’s just one of the reasons why improving and enhancing bank reporting on deposits is vital. Currently, publicly available financial data for most banks contains only estimates of the insured and uninsured shares of total deposits. This results in limited and incomplete information on financial risks, specifically those stemming from risky and volatile uninsured deposits.

“New and expanded reporting requirements will provide valuable transparency for regulators, investors, and the public to understand risks in the banking system. They will also improve offsite risk and liquidity monitoring, deposit insurance pricing, and the failed bank resolution process. Broadening deposit insurance to cover deposit accounts that directly support functions such as small business transactions and payroll will also be beneficial.

“The costs associated with this expanded reporting are justified because of the range of benefits that the improved reporting will yield. Moreover, particularly in the wake of the spring 2023 bank failures, any bank that is not already calculating its share of insured and uninsured deposits to understand its risk profile is not being run in a safe and sound manner.”

The Comment Letter is available here.

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.