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Splitting deposits isn't the only option and is often not the best one. There are a number of other solutions available, including buying your own insurance. FDIC insurance isn't the only insurance available (and isn't even intended primarily for businesses). It's just the free one.

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There isn't enough money in the world to insure the bank deposits of every business. Think about how big insurers would have to be if they needed to insure all the deposits of every business. "Every business should have private deposit insurance" isn't the goal of regulators because it's not a workable solution.

So instead the government acts as a sort of "insurer of last resort" by promising they will do everything they can to protect depositors in the case of banking instability.

> There isn't enough money in the world to insure the bank deposits of every business.

And yet, that is exactly how it's been done for a very, very long time.

There is, of course, enough money to insure all of the deposits, for the same reason there's enough money to insure all the buildings, all the ships, and so forth.

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