CBA’s Johnson On Fox Business: Banks Are Well-Positioned To Weather This Current Economic And Industry Disruption

In a new interview this morning on Fox Business’ “Mornings with Maria,”

Consumer Bankers Association (CBA) President and CEO Lindsey Johnson reinforced the strength of the U.S. financial system amid recent market volatility and reiterated America’s leading banks remain well-positioned to continue serving consumers and small businesses as they contend with ongoing economic challenges. 

Responding to recent uncertainty across the financial marketplace, Johnson expressed confidence in the strength and resiliency of America’s leading banks, stating:

“The market's emotions have nothing to do with banks. […] You see volatility in the market. But when you look at the banks, balance sheets are incredibly strong, and the American banking system is the strongest in the world. Banks are well-capitalized and well-positioned to weather this current economic and industry disruption. [Banks are also] helping consumers and small businesses be ready for what's next, just as they did through the COVID-19 pandemic.”

Touting the critically important role regional banks play as drivers of economic growth and financiers of the American Dream, Johnson added: 

“They offer more than two thirds of all small business loans. They serve their customers and communities on a daily basis. They are critical to our economy. [Those] suggesting anything other than regional banks are one of the most important segments of this industry […] seems very uninformed. We want to make sure that we've got a strong, healthy banking system, community banks, regional banks, and […] the largest institutions.”

“The best antidote to anxiety is sober reality. And unfortunately, we've seen a lot of misinformation, a lot of folks talking about a regional crisis. The situation that happened with SVB and Signature Bank are completely different.”

Johnson also reiterated CBA’s call for policymakers to address misinformation that has fueled volatility in the markets, threatening consumers’ confidence in the banking system:

“We are concerned about some of the misinformation in media and also what we see with some activist investors that we think is really […] sowing some of the distrust and conflating issues within the system at large. […] We are calling on regulators and policymakers to call out unethical behavior and to really shine a light on what we think is doing harm to millions of American consumers and the banking system at large.”

To watch the full interview, click HERE. 

Background

• Last week, Johnson called on policymakers to address those seeking to take advantage of market volatility at the expense of the millions of consumers banks serve. To read the full statement, click HERE. 
• In a statement responding to the release of several reports examining recent bank failures, Johnson said: “we – members of Congress, regulators, and the industry – have a responsibility to work together to support the consumers we all serve, and that's exactly what our members will continue to do.” To read the full statement, click HERE.