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Community banks are still worried about possible risks to the US economy and financial system the European debt crisis for one thing.
So they want congress to extend for five more years and FDIC guarantee program for big bank deposits.
The agency started this in 2008 in the financial crisis to give big bank customers confidence that their deposits will be safe.
And then would keep them in the bank.
It's called the transaction account guarantee program it's scheduled to expire at the end of this year.
It covers deposits in excess of 250000.
Dollars and mainly business checking accounts.
The program insures one point two trillion dollars in deposits right now.
And banks actually pay for the cost with billions in premiums that they pay each year -- the FDIC's deposit insurance program.
Smaller banks in particular rely on these big deposits to help finance their lending and other activities.
They say that if customers pull their money because the tag program expires bank lending will suffer especially to.
Small business and so much of our deposits.
Or an accounts in excess of 250000.
-- that if they do eliminate this program.
I believe that deposits will leave and -- the 24% loan growth that we've been able to in -- Be able to get back.
Just won't be able to be continued.
The Independent Community Bankers Of America is leading a push to convince congress to extend the tag starting with 14100.
Letters its members sent to lawmakers earlier this month.
That's it for this edition of the small business report.
I'm Peter Barnes Fox Business Network.
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