A broad coalition of bankers' banks – institutions that serve community banks – are urging the extension of full FDIC coverage for nearly $1.3 trillion in small business deposits, according to a release from the Independent Community Bankers of America.

In a letter to congressional leaders, 15 bankers' banks that serve more than 5,000 community banks said extending the FDIC's transaction account guarantee insurance beyond its Dec. 31 expiration date is essential to preserving community bank liquidity and small business lending capacity.

"In the current challenging economic environment, an abrupt contraction in liquidity would pose an unacceptable risk to credit availability and the economic recovery," the bankers said in the letter. "We ask that the Congress extend the FDIC TAG program at the earliest possible opportunity. Banks fully pay for this FDIC insurance coverage through their insurance premiums and no taxpayer money is used."