March 24, 2023

ICYMI: Berger talks bank failures, strength of CUs on SiriusXM

SiriusXMNAFCU President and CEO Dan Berger joined Wharton Business Daily host Dan Loney on SiriusXM yesterday morning to discuss the recent bank failures as well as the strength of the credit union industry.

Berger noted there were “red flags” with Silicon Valley Bank (SVB) prior to its failure, as it was cited by the San Francisco Federal Reserve for not having enough access to liquidity. He added that the financial system already has effective regulations in place but questioned why SVB was not forced to address several identified risks after their citations.

When asked if he could see a similar incident happening to credit unions, Berger said that would not be likely since credit unions put value in protecting their members’ money and over 90% of credit union deposits are insured by the NCUA.

“The credit union system is well capitalized, conservatively run – so no, we won’t experience what you’ve seen with SVB and Signature,” said Berger.

Additionally, he remarked that, instead of a decline, the industry is seeing a “flight to safety,” from banks to credit unions, much like the growth the industry saw during the 2008 crisis.

NAFCU will continue to reiterate the credit union difference and strength of the industry.