Nebraska Bankers Association Statement on Bank Closures in California and New York

Nebraska’s banking industry remains a source of strength and stability. They maintain strong capital levels and record levels of loan loss reserves, allowing them to successfully absorb economic shocks. Nebraska bankers take pride in their strong relationships with customers and are invested in the economic growth and prosperity of the state.
 
The recent bank closures in California and New York appear to be outliers and not reflective of the norm for banks across America and Nebraska. The closed banks had significant exposure to volatile sectors including cryptocurrency. Nebraska 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 Nebraska bank with any questions.
 
About the Nebraska Bankers Association
The Nebraska Bankers Association was founded in 1890 and is the voice of Nebraska’s banking industry, which is composed of small, regional and large banks that together employ more than 17,000 people, and safeguard nearly $82 billion in deposits, all within the state of Nebraska

For more information, contact Kara Heideman at kara.heideman@nebankers.org.