Policy Backgrounders
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Navigating the Economic Storm

Policy Backgrounders

CED’s Policy Backgrounders provide timely insights on prominent business and economic policy issues facing the nation.

Banks Stabilizing while Policymakers Await Reviews

April 14, 2023

Insights for What's Ahead

  • Internal reviews by the Federal Reserve and FDIC are expected by May 1 and will help determine the necessity of potential legislative and regulatory changes.
  • Concern about the viability of smaller banks and the impact of policy to shape industry structure have motivated dialogue by both Republicans and Democrats on the FDIC’s deposit insurance limits, the assessment of fees to replenish the Federal Deposit Insurance Fund, and appropriate regulations for mid-sized banks.
  • In Senate and House hearings on March 28-29, regulators were pressed on the failure of SVB’s management to address risks that had been identified by regulators as early as late-2021, specifically whether the Fed failed to act or if enforcement mechanisms were lacking.

For further insights on the banking crisis, please see the latest update from the Economy, Strategy, and Finance Center.

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