As you may be aware, there was some troubling news about Silicon Valley Bank (SVB) in California last week. Here’s a brief explanation of what’s happening:
According to recent news, the Federal Deposit Insurance Corporation (FDIC) shut down SVB following a 48-hour bank run and capital crisis, which appears to be the result of high-volume withdrawals and a lack of diversity in their risky high-tech customer base.
To date, the impact of SVB is limited but regulators are taking a closer examination of financial institutions with risky lending practices and deposits. As a result, NY banking regulators closed Signature Bank due to systemic risk.
Customers of Silicon Valley Bank and Signature Bank gained access to all their money earlier this week, and the Federal Reserve will also make additional funding available for eligible financial institutions to prevent runs on similar banks as a precautionary measure.
While these two banks were not credit unions, we understand there may still be concerns for Triangle members. We want to share that Triangle remains a financially sound and strong Credit Union.
A few facts about your membership that will put you at ease:
- Triangle Credit Union maintains a diverse loan and investment portfolio, which significantly decreases risk.
- Federally insured credit unions offer a safe place for credit union members because all deposits are protected by the National Credit Union Administration (NCUA) for up to $250,000 per individual depositor, per ownership category. Accounts can be structured to ensure your insurance is maximized.
- Credit union members have never lost a penny of insured savings at a federally insured credit union, and our industry’s deposit insurance fund has the backing of the full faith and credit of the U.S. government. See MyCreditUnion.gov for more information.
- Triangle Credit Union is a well-capitalized financial situation, maintaining equity reserves and investments that prioritize needed safety and soundness for our members.
As an additional resource, visit the National Credit Union Administration’s (NCUA) Share Insurance Estimator. This lets consumers, credit unions, and their members know how its share insurance rules apply to member share accounts.
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