MBA Statement on Bank Closures in California, New York
Missouri’s banking industry remains a source of strength and stability. Banks in Missouri maintain strong capital levels, ample liquidity and record levels of loan loss reserves, allowing them to successfully absorb economic shocks. Missouri bankers take pride in their strong relationships with customers and are invested in the economic growth and prosperity of their communities and the state.
The recent bank closures in California and New York appear to be outliers; they do not reflect the norm for banks across Missouri and America. The closed banks had significant exposure to volatile sectors, including cryptocurrency. Missouri banks have limited exposure to these types of industries.
The recent closures are the first bank closures in nearly three years, which is a testament to the resiliency of banks and their ability to support the economy and the communities they serve.
The Federal Deposit Insurance Corporation insures funds in bank deposit accounts up to $250,000. In the 88-year history of the FDIC, no one has ever lost a penny of an insured deposit. Customers are encouraged to contact their Missouri banks with any questions.
The Missouri Bankers Association is a statewide trade and professional organization in Jefferson City that represents the interests of 235 banks and savings and loan financial institutions in Missouri. MBA serves as the principal advocate for the Missouri banking community and provides educational opportunities, products and services that assist bankers with enhancing their banking operations. For more information, visit mobankers.com. Follow MBA on Twitter at @mobankers.com.