To avoid bankruptcy infection US banks are calling on the government to protect deposits for a period of two years

The Coalition of Mid-Sized Banks in America said it had asked the authorities to guarantee all their customers' deposits for two years, to stop the flight of deposits from smaller banks, and to ensure the stability of the banking sector, which greatly reduces the chances of more bank failures.

A consortium of mid-sized US banks has asked the Federal Banking Regulatory Authority to guarantee all their customers' deposits for two years, even for amounts over the $250,000 limit, to avoid a contagion of Silicon Valley bankruptcy, Bloomberg reported Saturday .

The Mid-Sized Banks in America (MBCA) said in a letter to the authorities, according to the agency’s report, that this measure would “immediately stop the flight of deposits from smaller banks, stabilize the banking sector and significantly reduce the chances of further collapse.” banks".

The bankruptcy of Silicon Bank (SVB) and Signature Bank caused a crisis of confidence in this sector.

Many customers of similarly sized banks have withdrawn their money and deposited it in larger institutions like JPMorgan or Bank of America, which are too big for the government to ignore bailing out in the event of a collapse.

This week, the market value of First Republic Bank, which mainly serves high-net-worth clients, plunged by 80 percent amid fears of a contagion collapse. The bank ranks 14th among the largest US banks in terms of assets.

"Despite the health and safety of the banking sector in general, confidence in all but the largest banks has eroded," Bloomberg quoted the coalition of banks.

In particular, the coalition called on the FDIC, the Federal Reserve and Treasury Secretary Janet Yellen to work to "immediately restore confidence."

The Banking Group proposes to finance this measure itself by increasing the amount of contributions that banks pay to the FDIC.

On Thursday, 11 major US banks pledged to deposit a total of $30 billion in First Republic accounts.

Bank of America, Citigroup, JPMorgan Chase and eight other institutions hope to show their confidence in the country's banking system, according to a joint statement.