On Friday, March 10, federal banking regulators shut down Silicon Valley Bank, or SVB, making it the second largest bank failure in U.S. history. Many individuals and businesses found themselves wondering what all this meant and should they go down to their local bank and immediately withdraw all of their money.
“In light of recent industry events, the National Bankers Association wants to assure consumers that your money is safe with minority banks. Minority depository institutions are very different from both SVB and Signature Bank, which had high concentrations in crypto deposits and volatile venture capital. Minority banks are not exposed to riskier asset classes and have the capital and strong liquidity to best serve consumers and small businesses. If you’re looking for a place to bring your deposits and have greater impact, bring your deposits to minority banks,” said Nicole Elam, president and CEO of the National Bankers Association.