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Banks Remain Well-Positioned to Ensure Consumers’ Money is Safe and Secure
March 13, 2023
WASHINGTON, D.C. – Consumer Bankers Association (CBA) President and CEO Lindsey Johnson released the following statement in response to the closure of Silicon Valley Bank and federal regulators’ subsequent actions:
“Americans should feel confident in the strength and resiliency of our nation’s banking system. Our members are well-regulated, well-capitalized, and well-positioned to ensure consumers’ money is safe and secure. In 2010, policymakers passed sweeping overhauls to the banking industry to maintain market stability and deliver the highest levels of consumer protection. Since then, banks have raised capital reserves and put in place measures to ensure the institutions Americans count on can withstand some of the greatest economic shocks. Further, banks directly fund the Deposit Insurance Fund to guarantee affected consumers can access their deposits.
“The last several days represent a unique incident fueled by misinformation on social media and are not indicative of the health of our industry. In the coming days and weeks, policymakers and industry will examine what happened and how best to ensure this does not happen again. Our nation’s banks remain committed to providing access to safe and affordable loan products, protecting Americans’ savings, and working together to reaffirm the trust Americans have placed in the banking system.”
- Following the failures of California-based Silicon Valley Bank (SVB) and New York-based Signature Bank, the Department of the Treasury, Federal Reserve, and FDIC released a joint statement assuring all depositors – both insured and uninsured – will be made whole at no cost and that banks will be responsible for covering the losses through the Deposit Insurance Fund (DIF).
- Further, The Federal Reserve also announced the creation of a special lending program – the Bank Term Funding Program or BTFP – to shore up liquidity for other banks and “help assure banks have the ability to meet the needs of all their depositors.”
- This morning, President Biden reiterated the strength and resiliency of the financial system, stating: "Americans can have confidence that the banking system is safe. Your deposits will be there when you need them.”