Kenneth A. Guenther, president and CEO of the Independent Community Bankers of America, issued the following statement regarding Federal Reserve and Treasury Department testimony on deposit insurance reform before the Subcommittee on Financial Institutions and Consumer Credit of the House Financial Services Committee:

"FDIC insurance is an essential component of consumer confidence in thebanking system and thus the safety and soundness of the American financialsystem.

"We are disappointed that, by rejecting an inflation adjustment in deposit insurance coverage levels, the Federal Reserve and the Treasury are advocating policies that will weaken a vital and successful U.S. government program."

ICBA is the primary voice for the nation's community banks, representing

5,000 institutions at nearly 17,000 locations nationwide.