WASHINGTON—Yesterday, United States Senators Bill Hagerty (R-TN) and Angela Alsobrooks (D-MD), members of the Senate Banking Committee, introduced the bipartisan Main Street Depositor Protection Act, legislation that expands deposit insurance coverage for noninterest-bearing transaction accounts.
The Main Street Depositor Protection provides $10 million of additional deposit insurance coverage for noninterest-bearing transaction accounts at eligible banks and credit unions. The bill aims to enhance overall financial stability and strengthen the small and mid-sized lenders that drive economic growth in communities across the nation.
“This essential reform strengthens regional and community banks’ central roles in the financial system of the future,” said Senator Hagerty. “A stronger and safer banking system will benefit all Americans.”
“Permanently extending deposit insurance to payroll accounts will protect small businesses, community banks, credit unions, and the people they serve,” said Senator Alsobrooks. “I am proud to partner with Senator Hagerty on this commonsense bipartisan legislation to build an economy Marylanders, small business owners, and all Americans can trust. I look forward to continuing to build broad bipartisan support to get this done. I want small businesses in Maryland and across the country to have security in the event of another Silicon Valley Bank crash. All small businesses that bank with smaller lenders deserve to have confidence their deposits are safe.”
The legislation is endorsed by:
- Independent Community Bankers of America
- Mid-Size Bank Coalition of America
- America’s Credit Unions
- Tennessee Bankers Association
- Tennessee Credit Union League
“The Independent Community Bankers of America and the nation’s community banks support the Main Street Depositor Protection Act, which will improve our nation’s successful deposit insurance system by providing increased insurance coverage for small businesses while minimizing additional costs for community banks,” said Rebeca Romero Rainey, President and CEO of Independent Community Bankers of America. “Expanding deposit insurance coverage up to $10 million per depositor for noninterest-bearing transaction accounts and ensuring community banks under $10 billion in assets are not required to pay higher assessments to the FDIC for a 10-year period will expand confidence and stability of bank deposits used to fund loans and support local economies. We thank Sens. Hagerty and Alsobrooks for their work on behalf of community banks and the local communities they serve.”
“Mid-size banks are grateful to power Main Street—supporting small and mid-size businesses, serving families and entrepreneurs, and creating jobs in communities nationwide,” said Brent Tjarks, CEO of the Mid-Size Bank Coalition of America. “The Main Street Depositor Protection Act strengthens our ability to do so by providing industry-funded protection for business operating accounts, keeping payroll and working cash at relationship banks and stabilizing the deposits that underpin small-business lending and local economic strength. It’s a no-taxpayer-backstop reform that does not expand the federal safety net or the size of government; we commend Senators Hagerty and Alsobrooks for their leadership and look forward to working with Congress to advance it.”
“America’s Credit Unions applauds Senators Hagerty and Alsobrooks for their bipartisan work on the Main Street Depositor Protection Act,” said Jim Nussle, President and CEO of America’s Credit Unions. “This bill would ensure small businesses have faith in their local financial institutions, such as credit unions, so that they can work with a trusted community credit union for their financial needs instead of a Wall Street mega bank. This commonsense reform will help credit unions continue to meet their mission of helping Main Street America.”
“Tennessee’s banks appreciate Senator Hagerty’s leadership on the Main Street Depositor Protection Act,” said Colin Barrett, President and CEO of Tennessee Bankers Association. “This bill strengthens confidence for depositors while protecting community banks from higher premiums. It’s a smart, balanced approach that helps local banks keep serving the customers and communities that depend on them.”
“The Tennessee Credit Union League strongly supports the Main Street Depositor Protection Act, which provides essential safeguards for noninterest-bearing transaction accounts held by local businesses and community organizations,” said Sarah Waters, Chief Advocacy Officer, Tennessee Credit Union League. “This bill strengthens confidence in our financial system and ensures that credit unions can continue serving as trusted partners for small businesses and consumers who depend on access to safe and reliable transaction accounts. Protecting these deposits means protecting Main Street — and that’s at the heart of the credit union mission.”
Full text of the legislation can be found here.
