LINCOLN–The Nebraska Bankers Association issued a statement on Monday morning, after President Biden said that the nation’s financial systems are safe and sound.  U.S. regulators closed Silicon Valley Bank on Friday after it experienced a traditional bank run, where depositors rushed to withdraw their funds all at once. Then New York-based Signature Bank also failed.

According to the Nebraska Bankers Association, the state’s banking industry remains a source of strength and stability, with strong capital levels and record levels of loan loss reserves, allowing them to successfully absorb economic shocks. The association says Nebraska bankers take pride in their strong relationships with customers and are invested in the economic growth and prosperity of the state.

The recent bank closures in California and New York appear to be outliers and not reflective of the norm for banks across America and Nebraska. The closed banks had significant exposure to volatile sectors including cryptocurrency. Nebraska banks have limited exposure to these types of industries.

The recent closures are the first bank closures in nearly three years, which is a testament to the resiliency of banks and their ability to support the economy and the communities they serve.

The Federal Deposit Insurance Corporation insures funds in bank deposit accounts up to $250,000. In the 88-year history of the FDIC, no one has ever lost a penny of an insured deposit. Customers are encouraged to contact their Nebraska bank with any questions.