Deposits in excess of $250,000 in noninterest-bearing transaction accounts, or "TAG" deposits, totaled $1.3 trillion in the first quarter, up from $893 billion in the same quarter a year ago, according to the FDIC Quarterly Banking Profile released late last month.

If Congress fails to extend the FDIC TAG insurance program, those deposits would become uninsured on Dec. 31. Congress modified and extended the successful insurance program in 2010 through 2012 and now must consider another extension.

The Independent Community Bankers of America has been leading the charge to bring attention to this community-bank and small-business issue and says it will continue to urge Congress to act quickly so that the bank-funded insurance doesn't lapse on Dec. 31.

"The FDIC Quarterly Banking Profile numbers show that TAG deposits comprise 15 percent of total domestic deposits. Policymakers should act expeditiously to continue this successful and important insurance," asserts Camden R. Fine, ICBA president and CEO. "Community bankers nationwide are confident that a temporary extension of the TAG program is critical to help keep local deposits available in local banks to support small business lending and job creation."

ICBA is urging Congress to approve a five-year extension of deposit insurance coverage for noninterest-bearing transaction accounts through 2017.

"Banks fully pay for this insurance through their normal deposit insurance premiums, so extending this program is a win-win for everyone on Main Street," Fine contends.

ICBA says full FDIC coverage keeps business and municipal accounts secure, which is one reason it's lobbying for Congress to extend the coverage. Small businesses and other entities use transaction accounts to meet payroll and other recurring expenses. Municipalities use such accounts to deposit local tax revenues and to pay operating expenses.

These entities depend on full insurance coverage to keep their deposits safe and secure, Fine says.

Also, ICBA points out, no taxpayer money is used to pay for this FDIC insurance since it is fully funded by bank premiums.

For more information about extending full FDIC insurance for "TAG" deposits and ICBA, visit www.icba.org.