ICBA Commends FDIC Deposit Insurance Recommendations

Apr 05, 2001, 01:00 ET from Independent Community Bankers of America

    WASHINGTON, April 5 /PRNewswire/ -- As Secretary of Defense Don Rumsfeld
 is now reviewing the state of readiness of American defense, FDIC Chairman
 Donna Tanoue has just completed a comprehensive year-long effort to review and
 make recommendations concerning the "state of readiness" of the FDIC.  The
 FDIC remains an essential foundation of consumer confidence in the nation's
 financial system.  This again will be underscored as the U.S. economy weakens.
     "We are very encouraged that House Financial Services Committee Chairman
 Mike Oxley and Financial Institutions Subcommittee Chairman Spencer Bachus
 will hold prompt hearings on FDIC deposit insurance reform recommendations,"
 said ICBA President and CEO Kenneth A. Guenther.  "We do feel that millions of
 Americans are looking for longer-term investment options in banks and thrifts
 against the backdrop of a disruptive stock market."
     "Increased deposit insurance levels indexed for inflation will encourage
 such savings while strengthening important core deposits in banks increasingly
 facing funding challenges," Guenther added.
     ICBA also welcomed the report's recommendations addressing the
 increasingly ominous free rider problem where large securities firms are
 moving tens of billions of dollars into the deposit insurance system without
 paying a nickel in premiums, as well as recommendations to reduce unnecessary
 premium volatility (by eliminating the hard target reserve ratio), enhance
 risk-based premium pricing, and provide appropriate rebates of excess fund
 reserves.
     "The report sets the framework for comprehensive Congressional review of
 federal deposit insurance in a non-crisis atmosphere," Guenther concluded.
 "It is an impressive legacy of Chairman Tanoue's wise stewardship of the
 FDIC."
     ICBA is the primary voice for the nation's community banks, representing
 5,300 institutions at nearly 17,000 locations nationwide.  Community banks are
 independently owned and operated and are characterized by attention to
 customer service, lower fees and small business, agricultural and consumer
 lending.  ICBA's members hold more than $486 billion in insured deposits, $592
 billion in assets and more than $355 billion in loans for consumers, small
 businesses and farms. They employ nearly 239,000 citizens in the communities
 they serve. For more information, visit http://www.icba.org .
 
 

SOURCE Independent Community Bankers of America
    WASHINGTON, April 5 /PRNewswire/ -- As Secretary of Defense Don Rumsfeld
 is now reviewing the state of readiness of American defense, FDIC Chairman
 Donna Tanoue has just completed a comprehensive year-long effort to review and
 make recommendations concerning the "state of readiness" of the FDIC.  The
 FDIC remains an essential foundation of consumer confidence in the nation's
 financial system.  This again will be underscored as the U.S. economy weakens.
     "We are very encouraged that House Financial Services Committee Chairman
 Mike Oxley and Financial Institutions Subcommittee Chairman Spencer Bachus
 will hold prompt hearings on FDIC deposit insurance reform recommendations,"
 said ICBA President and CEO Kenneth A. Guenther.  "We do feel that millions of
 Americans are looking for longer-term investment options in banks and thrifts
 against the backdrop of a disruptive stock market."
     "Increased deposit insurance levels indexed for inflation will encourage
 such savings while strengthening important core deposits in banks increasingly
 facing funding challenges," Guenther added.
     ICBA also welcomed the report's recommendations addressing the
 increasingly ominous free rider problem where large securities firms are
 moving tens of billions of dollars into the deposit insurance system without
 paying a nickel in premiums, as well as recommendations to reduce unnecessary
 premium volatility (by eliminating the hard target reserve ratio), enhance
 risk-based premium pricing, and provide appropriate rebates of excess fund
 reserves.
     "The report sets the framework for comprehensive Congressional review of
 federal deposit insurance in a non-crisis atmosphere," Guenther concluded.
 "It is an impressive legacy of Chairman Tanoue's wise stewardship of the
 FDIC."
     ICBA is the primary voice for the nation's community banks, representing
 5,300 institutions at nearly 17,000 locations nationwide.  Community banks are
 independently owned and operated and are characterized by attention to
 customer service, lower fees and small business, agricultural and consumer
 lending.  ICBA's members hold more than $486 billion in insured deposits, $592
 billion in assets and more than $355 billion in loans for consumers, small
 businesses and farms. They employ nearly 239,000 citizens in the communities
 they serve. For more information, visit http://www.icba.org .
 
 SOURCE  Independent Community Bankers of America