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NAFCU Vice President of Legislative Affairs Brad Thaler Monday submitted a letter to the Senate Banking Committee ahead of its hearing this morning to examine the Silicon Valley Bank and Signature Bank collapses. In the letter, Thaler reaffirmed that the credit union industry “remains a strong, well capitalized and safe place for consumers,” touting the unique non-profit, cooperative structure of credit unions. 

Thaler added that while banks only have roughly 50 percent of deposits insured by the FDIC, over 90 percent of credit union deposits are insured by the NCUA.

“Credit unions haven’t seen runs on their deposits like some banks because of the relationship they have with their members – who know their money is safe at their credit union,” wrote Thaler. “That’s the credit union difference. Our industry prioritizes members’ financial well-being over profits.”

NAFCU Senior Vice President of Government Affairs Greg Mesack shared an update with members last week, noting that regulators’ initial responses seem to have contained the impact of the failures. Mesack flagged that the hearing will likely focus on extending deposit insurance coverage, repealing regulatory relief for mid-size institutions, and changing compensation for bank executives.

Of note, Federal Deposit Insurance Corporation (FDIC) Chair Martin Gruenberg, Federal Reserve Vice Chair of Supervision Michael Barr, and Treasury Department Under Secretary for Domestic Finance Nellie Liang are set to testify at the hearing, starting at 10 a.m. Eastern and will be livestreamed.

Read the letter. NAFCU will monitor the hearing and provide credit unions with updates via NAFCU Today.