Can recent bank failures impact local banks
LAWTON, Okla. (KSWO) - Locals are worried about the safety and stability of our banks after what financial experts are calling the 2nd largest bank failure in the U.S. since 2008.
Dani Blackburn, a Lawton CPA, said the collapse of Silicon Valley Bank has her clients wondering what they should do with their money next.
“Our firm works closely with all of the local banks and we have not heard any concern through the pipeline that there is any reason for worry,” said Blackburn.
But if you still have that doubt, Blackburn said your deposits are insured by the Federal Insurance Deposit Corporation up to a certain amount.
“There are also options out there for additional insurance if their deposits are in excess of the $250,000 FDIC limit,” she said.
City National Bank’s Chief lending officer Doug Stephens, recommends asking your bank questions before making any decisions.
He said the bank can make suggestions depending on your account.
“There (are) certain ways, depending upon the way that it’s styled, how the ownership structure is, sometimes as simple as adding a beneficiary in the terms of payable on death, would allow them an additional $250,000 coverage for that particular account,” he said.
Stephens said Silicon Valley Bank made risky investments, which is part of why it collapsed. He wants customers to know community banks are careful with the kinds of investments they make and they have the receipts.
“We are examined by our regulators on a regular basis, we have our financials audited, all that information is public knowledge,” said Stephens.
Stephens said situations like these can cause people to panic and withdraw their money, which can cause bigger issues for banks.
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