It is reported that the American Federation of small and medium-sized Banks (MBCA) has asked US federal regulators to provide commercial insurance for all deposits in the next two years.

According to Bloomberg News on March 18, MBCA-, an alliance of small and medium-sized banks in the United States, sent a letter to the Federal Deposit car Insurance Company (FDIC), claiming that an increase in "full deposit" insurance would "immediately stop" the loss of deposits from smaller banks.

According to reports, MBCA also mentioned that the move would "stabilize" the banking sector and significantly reduce the probability of "a large number of bank failures".

MBCA proposes that banks finance insurance plans themselves by strengthening deposit insurance assessments of borrowers selected to participate in the expansion of insurance coverage.

Robert Deaton, founder of Crypto Law Lawner, the mainstream media of laws and regulations, predicted in a tweet to his more than 250000 followers on March 19th that if FDIC failed to provide "some loan guarantees", as many as 300 banks could fail.

Previously, an analysis recently released by economists on March 13 showed that many banks encountered the risk of withdrawing deposits without commercial insurance.

The results show that "even if only half of the uninsured depositors" confirm withdrawals, "nearly 190banks still face a" potential risk of damage to insured depositors, "and 300 billion dollars of insured depositors may be at risk."

In addition, Tom Emmer, a US congressman and majority whip of the US House of Representatives, suspected in a letter to George Glenn Herbert, current chairman of the FDIC, on March 15 that the relevant FDIC had weaponized the recent unstable situation in the banking industry, so as to report from the United States "activities on the theme of eliminating reasonable and legitimate data encryption."

Mr Emmer warned that such behaviour was "very inappropriate" and could lead to "broader financial instability".

In addition, the US Federal Reserve Board (Federal Reserve) announced on March 13th that Deputy Secretary of Management and Control Michael Eric (Michael Barr) had "taken the lead and verified supervision and control"due to the failure of Silicon Valley banks in the United States", and the new verification was scheduled to be released before May 1st.