The Federal Deposit Insurance Corporation will undertake a comprehensive review of the deposit insurance system and will release a report by May 1, according to testimony to be given by chair Martin Gruenberg.

The review will include policy options for consideration related to deposit insurance coverage levels, excess deposit insurance, and the implications for risk-based pricing and deposit insurance fund adequacy, said Gruenberg in testimony he will deliver Tuesday on Capitol Hill.

"The state of the U.S. financial system remains sound despite recent events," he added. "In general, banks have been prudently working preemptively to increase liquidity and build liquidity buffers," he said.