Berger outlines what CUs need to know on bank failures
As President Joe Biden, lawmakers, and regulators Monday continued to address the failings of Silicon Valley Bank (SVB) and Signature Bank, NAFCU President and CEO Dan Berger sent a message to member credit unions providing additional insights into the situation and the safety of credit union deposits.
Berger highlighted that:
- the banks’ failings are a result of “their poor management of assets and liabilities – not a systemic failure” like the 2008 financial crisis;
- SVB and Signature Bank’s banking models are not representative of the U.S. financial ecosystem, as their businesses were heavily concentrated in startup companies, venture capital firms, and crypto companies;
- over 90 percent of credit union deposits are insured by the federal government, compared to only 50 percent of banks’ deposits; and
- federal regulators took swift action to meet the needs of the depositors and protect taxpayers from shouldering the cost of the failures.
NCUA Board Chairman Todd Harper also released a statement, saying “the credit union system remains well-capitalized and on a solid footing.” Harper said the NCUA will continue to closely monitor credit union performance during examinations and offsite monitoring, and reiterated that “no one has ever lost a single penny of insured share deposits within the credit union system.”
Of note, the Federal Reserve announced that Vice Chair for Supervision Michael Barr will lead a review of Silicon Valley Bank’s supervision and regulation; the review will be publicly released by May 1. Federal banking regulators provided updates to lawmakers on the situation Monday evening, and lawmakers are planning congressional hearings on the failures.
NAFCU remains engaged with lawmakers and regulators who are prioritizing investigations into both bank failures and will continue to tout the credit union difference.
Add to Calendar 2023-03-16 14:00:00 2023-03-16 14:00:00 AI Lending Partnerships and the Power of Efficiency About The Webinar How one credit union is balancing profitability and member growth with personal loans. Discover how your credit union can tap into personal lending opportunities to gain new, creditworthy members safely, even in periods of economic volatility. This session will dive deep into how a Chief Lending Officer is growing members in Arizona and proactively managing their return targets. Attendees will hear about: Attracting new members for long-term growth with a digital-first experience The benefits of AI-driven lending, including more accurate credit decisioning How Vantage West is navigating a successful partnership with a fintech How Upstart has helped Vantage West lend more inclusively as a CDFI Web NAFCU email@example.com America/New_York public
AI Lending Partnerships and the Power of Efficiency
Add to Calendar 2023-03-15 14:00:00 2023-03-15 14:00:00 Exponential Fraud Exposure: Reg II Awareness About the Webinar On this webinar we explore the impact of Reg II on card-not-present fraud. We’ll hear from Ann Davidson, VP of Risk Consulting, at Allied Solutions and a first-hand account of the implications attached to this regulation from Tracie Wilcox, President and CEO of On Tap Credit Union. We will examine how the timeline, with an effective date of July 1, 2023, will likely create unintentional negative consequences for consumers and credit unions as they’re forced to reprioritize this implementation over other consumer-oriented and security-focused improvements. This webinar will provide valuable insights into the challenges and potential solutions for navigating the new regulation. Attendees will walk away equipped with: An overview of Reg II and the upcoming implementation deadline. Steps to take to mitigate exposure. Examples of the risks on the horizon. Ann and Tracie are looking forward to sharing their vast experience and knowledge with the NAFCU community on March 15th. WATCH NOW Web NAFCU firstname.lastname@example.org America/New_York public
Exponential Fraud Exposure: Reg II Awareness
Macro Data Report - Retail Sales
CPRA Resource Issue Brief
Get daily updates.
Subscribe to NAFCU today.