IN THE NEWS: Banking System Remains Resilient
Last week’s closing of California-based Silicon Valley Bank (SVB) is worthy of further explanation as a singular event.
Though one of the larger banks in the country, most Americans may never have heard of SVB until Friday. Regarded as a financial partner of the tech-innovation economy, SVB sought deposit and lending relationships with venture capital firms. By their nature, such firms are typically high-risk tolerant. The borrowers and depositors of SVB were also largely comprised of tech investors. As SVB experienced concentrated deposit migration the bank was taken into receivership by the FDIC.
On Sunday evening, the U.S. Treasury announced all deposits, including amounts over the FDIC insured $250,000, would be accessible on Monday. Bank regulators described the failure as “an idiosyncratic event” related to the specific bank’s circumstances. Overall the Treasury Dept and the FDIC reinforced their view that “the US banking system remains resilient and on a solid foundation, in large part due to reforms that were made after the financial crisis that insured better safeguards for the banking industry.”
Country Club Bank remains committed to the safe and prudent banking principles and practices that have been our hallmark. Our lenders are experts in credit risk management and our deposits are gathered from businesses and households throughout the greater Kansas City community that we have so proudly served since our inception in 1953. We are a financial institution which has grown and prospered on safe and sane banking practices in lock step with our customers. As we demonstrated during The Great Recession, The Pandemic and every other economic risk to face our clients, from these standards we will not stray.
For assistance with your borrowing, deposit, investing and/or insurance needs, please call us at 816.931.4060, visit our website www.countryclubbank.com or stop by any of our 21 locations. We’re here to serve you.
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