The US could ease stress on the banking system by fully insuring deposits of regional banks like those at failed SVB, Mohamed El-Erian says

• US authorities could help ease bank concerns by protecting all depositors at mid-tier banks, Mohamed El-Erian said.  
• Widespread consolidation in mid-tier banks would not be good as smaller lenders serve local needs.  
• One economic analysis finds 186 banks vulnerable to failing like SVB should depositors rush to withdraw funds. 

Anxiety about the US banking system following the implosion of Silicon Valley Bank could be lessened if regulators extended the protection given to SVB depositors to those at regional banks nationwide, according to economist Mohamed El-Erian.