-Borrowers expected to withdraw deposits after end of TAG.
Global Banking News-December 31, 2012--Borrowers expected to withdraw deposits after end of TAG(C)2012 ENPublishing - http://www.enpublishing.co.ukGlobal Banking News - 31 December 2012
According to a survey carried out by the Federal Reserve, large borrowers such as insurance companies and hedge funds are expected to withdraw funds from commercial banks with the expiry of the extended transaction accounts guarantee (TAG) programme by the end of 2012.
The quarterly survey said that funds withdrawn from commercial banks would be re directed and parked in securities such as repurchase agreements, money markets funds or treasury bills.
With the expiry of the extended TAG, insurance provided by the Federal Deposit Insurance Corp. on non-interest bearing check in accounts will revert to the ceiling of USD250,000.
[Editorial queries for this story should be sent to gbn@enpublishing.co.uk]
((Distributed via M2 Communications - http://www.m2.com))
 Printer friendly
 Cite/link
 Email
 Feedback
| |
| Publication: | Global Banking News (GBN) |
|---|---|
| Date: | Dec 31, 2012 |
| Words: | 148 |
| Previous Article: | -Property owners in Scotland could face becoming 'uninsurable'. |
| Next Article: | -US banks closing the year on positive note. |