WASHINGTON–Trade groups, individual credit unions and regulators across the country have responded to the two bank failures last week with resources and messaging aimed at reassuring consumers and members about the health of credit unions.
Some of those efforts and resources include:
CUNA
CUNA has launched a webpage it said is designed to “support and provide resources for member credit unions” looking to highlight credit unions’ safety and soundness in the wake of the Silicon Valley Bank collapse.
“Credit unions were born in a time of financial crisis, and we are a safe harbor during life’s storms. The credit union difference means that credit unions act with the best interests of member-owners at heart, and credit unions will continue to meet member needs,” said CUNA President/CEO Jim Nussle.
The webpage contains messaging resources and graphics, tracks credit union outreach to members, and contains links to information on the credit union difference at YourMoneyFurther.com and information about the National Credit Union Share Insurance Fund.
National Credit Union Administration
In a statement, NCUA Chairman Todd Harper said, “The credit union system remains well-capitalized and on a solid footing. The National Credit Union Administration continues to monitor credit union performance through both the examination process and offsite monitoring, and it will continue to do so into the future.
“Credit unions have access to a wide range of liquidity sources. The NCUA, along with its Central Liquidity Facility, is able to provide a back-up source of liquidity to member credit unions as needed.
“The agency continues to coordinate with the other federal financial institution regulators to ensure the continued resiliency of the American financial services system.
“As always, the NCUA is committed to the protection of credit union members and the safety and soundness of the credit union system overall. No one has ever lost a single penny of insured share deposits within the credit union system.”
Cornerstone Credit Union League
“It’s important to note that credit union members have never lost a penny of insured savings at a federally insured credit union,” the Cornerstone CU League said in a statement. “Deposits are protected by the National Credit Union Share Insurance Fund and insured up to at least $250,000 per individual depositor, the same as any other federally insured financial institution. Further, the largest credit unions are required to have liquidity coverage of at least two times their asset size.”
Cornerstone has created a webpage for credit unions that provides safety and soundness talking points, social media graphics, and more resources to “help credit unions reassure their members. The most important message we can send is that credit unions are well-capitalized and a safe place for consumers’ funds.”
Cooperative Credit Union Association
Cooperative CU Association President and CEO Ron McLean issued a statement saying, “It’s easy to see how the failure of a bank can stir up the financial waters, causing widespread concern among consumers. We have a responsibility to prevent credit unions from being drawn into this considerable wake of concern for several reasons.
“Credit unions operate on an entirely different business model. While Silicon Valley Bank focused its business entirely on the technology sector, credit unions focus on the communities and members they serve.
“Credit unions are owned by their members. They offer peace of mind because deposits at federally insured credit unions have the backing of the US Government and the National Credit Union Share Insurance Fund for up to $250,000 per individual depositor. No one has ever lost a single penny of federally insured share deposits within the credit union system.
“Shares and deposits of many of the Bay State’s Credit Unions also have the secured backing of the Massachusetts Credit Union Share Insurance Corporation.
“It’s important to me and to all the credit unions that we ensure our members and in fact all consumers with the knowledge that credit unions are safe and secure.”
.