Bank leaders assure that Alabama banks are secure amid recent closures

WAFF 48's Claudia Peppenhorst reporting
Published: Mar. 14, 2023 at 6:46 PM CDT
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HUNTSVILLE, Ala. (WAFF) -The closure of Silicon Valley Bank and Signature Bank has many Alabamians worried if their financial institution could be next.

Alabama Bankers Association CEO and President Scott Latham told WAFF that people have no need to worry about the recent closures, as banks here are in excellent condition.

“While Alabamians are right to question the stability of the situation, I am thankful to say that our banks are not only strong and stable but that they are in outstanding condition,” Latham said.

Latham said these closures are unusual as these banks mainly invested in start-ups and tech companies. He said Alabama banks have more diverse investments.

CEO and President of Redstone Federal Credit Union Joe Newberry said there are a few different ways to make sure you are banking with someone who is safe and secure.

“What kind of loans are they doing? Do they have a concentration risk? Another thing I would look at is, what’s the net worth of that institution. And, what are their ratings with the regulators?” Newberry said.

Latham said the FDIC maintains bank data for consumers and most financial information on banks is public. He says before you start to panic and withdraw money, think things through and communicate with your banker.

“Pause, think about it, ask questions, leave the money alone, the money is accessible,” Latham said. “Stay in touch with their banker. More often than not if a person has questions about anything about the bank, we advise them to check with that bank.” Latham said.

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