<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>And what's the insurance limit in Sg? Yep, SGD20k!
Oct 1, 2008
</TR><!-- headline one : start --><TR>Move to up deposit insurance limit <!--10 min-->
</TR><!-- headline one : end --><TR>FDIC says it's a temporary measure to provide additional liquidity for banks. </TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"-->WASHINGTON - THE head of the government's bank insurance agency called Tuesday for a temporary increase in the US$100,000 limit for insured bank deposits to help stabilise the fragile sector.
'Unfortunately, there is an increasing crisis of confidence that is feeding unnecessary fear in the marketplace,' Federal Deposit Insurance Corporation chairman Sheila Bair said.
'To address this crisis of confidence, I do believe that it would be helpful for the FDIC to have the temporary ability to raise deposit insurance limits,' Mr Bair said.
'This would provide the dual benefits of providing additional liquidity to banks for lending as well as provide some additional reassurance to depositors above the current limits.'
Some analysts fear the limit of US$100,000 for insured deposits might prompt a run by some businesses or institutional investors that might destabilise troubled banks.
The government recently offered insurance for money market funds without a limit, which could also lead to funds flowing out of banks and into those vehicles.
Mr Bair said that 'a temporary broadening of the FDIC's guarantee will provide some additional needed confidence to the marketplace.' Presidential candidates John McCain and Barack Obama had also suggested boosting the limits. -- AFP
Oct 1, 2008
</TR><!-- headline one : start --><TR>Move to up deposit insurance limit <!--10 min-->
</TR><!-- headline one : end --><TR>FDIC says it's a temporary measure to provide additional liquidity for banks. </TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"-->WASHINGTON - THE head of the government's bank insurance agency called Tuesday for a temporary increase in the US$100,000 limit for insured bank deposits to help stabilise the fragile sector.
'Unfortunately, there is an increasing crisis of confidence that is feeding unnecessary fear in the marketplace,' Federal Deposit Insurance Corporation chairman Sheila Bair said.
'To address this crisis of confidence, I do believe that it would be helpful for the FDIC to have the temporary ability to raise deposit insurance limits,' Mr Bair said.
'This would provide the dual benefits of providing additional liquidity to banks for lending as well as provide some additional reassurance to depositors above the current limits.'
Some analysts fear the limit of US$100,000 for insured deposits might prompt a run by some businesses or institutional investors that might destabilise troubled banks.
The government recently offered insurance for money market funds without a limit, which could also lead to funds flowing out of banks and into those vehicles.
Mr Bair said that 'a temporary broadening of the FDIC's guarantee will provide some additional needed confidence to the marketplace.' Presidential candidates John McCain and Barack Obama had also suggested boosting the limits. -- AFP
