House conservatives have voiced their opposition to any increased guarantees on bank deposits, which comes amid debate on whether expanding deposit insurance coverage is needed to stem a financial crisis marked by a drain of uninsured deposits away from smaller and regional banks.
A crisis of confidence in the banking sector was touched off earlier this month by the collapse of Silicon Valley Bank (SVB), with uninsured business depositors fleeing smaller community and regional lenders toward the biggest banks perceived as “too big to fail.”
