The U.S. banking system is strong and reliable. The industry is well regulated, and one of the results of the FDIC insurance program is that retail depositors should never have to wonder about the financial strength of their chosen bank. There is no need for retail depositors to panic, or to move away from whatever bank has provided them with great service.
The banking industry itself must change though, and there must be more differentiation between the treatment of banks with differing financial conditions. The good banks must be allowed to grow and attract more capital, and the less healthy banks should be either recapitalized, purchased by a stronger bank, or closed.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.