The collapse of California-based Silicon Valley Bank on Friday was the second largest failure of a financial institution in U.S. history. The bank was shut down and put under the control of the FDIC following a 48-hour bank run and capital crisis.
Sunday, the New York State Department of Financial Services, in conjunction with the FDIC, closed Signature Bank, the third-largest failure in U.S. banking history. Signature was a state-chartered bank with private client offices in New York, Connecticut, California, Nevada and North Carolina.
While credit unions were not involved in the failures, the New York Credit Union Association recognizes it may still create some consumer concerns here in New York and nationally.
Below are some talking points that you may wish to use when discussing this issue with your members:
- Both failed banks had limited customer base, which lead to the failures. Today’s credit unions have a wide membership base, which strengthens our financial position.
- Credit union deposits in federally insured credit unions are safe and secure.
- All New York credit unions offer a safe place for members to save their money and all deposits up to $250,000 are protected and insured by the National Credit Union Share Insurance Fund.
- New York Credit union members have never lost a penny of insured savings at a federally insured credit union.
- All New York credit unions are regularly examined by financial regulators to ensure proper management and maintain the safety and soundness of members’ money within the institution.
Visit MyCreditunion.gov for more information about the National Credit Union Share Insurance Fund coverage for consumers.