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Local banks remain a safe, ‘strong’ place to store money
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National headlines about recent bank woes can raise concerns about the safety and stability of the U.S. banking system. Local bank leaders emphasize that though it’s good for residents to be aware of how account insurance and limits work, holding funds at a bank is as safe as ever. When two banks, Silicon Valley Bank in California and Signature Bank in New York, failed within a few days of each other over the weekend of March 10-12, some wondered if the U.S. was headed toward another financial crisis. Federal authorities quickly took action to use insurance funds paid for by banks, not taxpayers, to reassure depositors that they would have full access to all of their money. They also wanted to prevent a “contagion” effect that might prompt banking customers elsewhere to withdraw funds out of fear.
