Texas Bankers Association President & CEO Chris Furlow Testifies Before U.S. House Committee on Financial Services on “The Future of Deposit Insurance”
Preparedness and Fairness for Community & Mid-Size Banks Emphasized
(Washington, D.C.) Texas Bankers Association (TBA) President & CEO Chris Furlow testified today before the U.S. House Committee on Financial Services at its hearing on “The Future of Deposit Insurance,” calling on Congress to adopt a balanced, data-driven, and modernized approach to protect America’s banking system and the communities it serves.
Speaking on behalf of TBA and in support of a two-step deposit insurance modernization strategy, Furlow emphasized that deposit insurance reform must meet the realities of 21st-century banking—where digital contagion can spread within hours, and where confidence in the system remains the foundation of economic stability.
“The failures of 2023 showed that our deposit insurance framework—built for a Depression-era economy—was not designed for an age of social media, instant payments, and rapid capital flight,” Furlow said. “Simply put, we got lucky. Policymakers must equip the system to prevent systemic failure before it begins.”
Furlow added, “…we suggest Congress reconsider what constitutes the concept of a ‘systemically important bank.’ All banks—to include small, rural and urban community banks—and the mid-size banks that often work with them—are ‘systemically important’ to the communities they serve.”
Key Points from Furlow’s Testimony:
- Protect the System from Failure:
Adopt an Emergency Transaction Account Guarantee (E-TAG) to provide 120 days of full coverage for transaction accounts during a systemic emergency—allowing rapid action without bureaucratic delay. - Fairness for All Banks:
Ensure protections apply equally to banks of every size, preventing depositor flight to “too big to fail” institutions and strengthening confidence across community, regional, and large banks. - Modernize for the 21st Century:
Use E-TAG as a stabilizing backstop while Congress undertakes a data-driven overhaul of deposit insurance—updating thresholds, costs, resolution processes, and technology needs to build a sustainable, modern system.
TBA looks forward to working with Congress, regulators, and industry partners to build a deposit insurance framework that is fair, forward-looking, and resilient for decades to come.
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WATCH THE TESTIMONY HERE: https://youtu.be/f6JzZVmbncs
FULL WRITTEN TESTIMONY HERE.
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