U.S. House Committee on Financial Services holds hearing on FDIC deposit insurance reform proposals and data gaps

The U.S. House Committee on Financial Services held a hearing on 18 November 2025 to examine the federal deposit insurance framework and evaluate potential reforms. Members and witnesses focused on the uncertain costs and behavioural effects of expanding coverage, the adequacy of current Federal Deposit Insurance Corporation (FDIC) data for policymaking, and the implications for the Deposit Insurance Fund and bank assessments. Discussion highlighted limitations in FDIC call report data for estimating how much additional funding would be needed if certain transaction accounts received higher coverage, including ambiguities in how depositor types and account categories are aggregated. Witnesses argued more granular data would be needed before major framework changes and warned about implementation costs, with one community bank executive estimating technology upgrades could exceed USD 100,000 annually and require additional staff capacity. Lawmakers and witnesses also raised concerns about moral hazard and maintaining diversity across community, regional, and global systemically important banks, while criticism centred on proposals to spread the cost of newly insured deposits over ten years through reserve-ratio accounting treatment that could leave the fund less able to absorb losses and increase the risk of special assessments on smaller banks.