FDIC recommends hiking $250,000 insured deposit limit for businesses

The risk of bank runs could be lowered if lawmakers accept a new proposal from the Federal Deposit Insurance Corp. to boost deposit-insurance protection for businesses above the current $250,000 threshold, according to a new FDIC report.

The report comes after three recent bank failures that were spurred by classic bank runs, with skittish depositors withdrawing their money amid concerns that instability at the banks would leave those with more than $250,000 in deposits with big losses.