Following notable concerns about the banking industry this week, local banks and credit unions are standing behind statements made by their respective associations saying Kansas financial institutions are strong and in good shape.
The Kansas Bankers Association says banks across the state are financially strong, keeping capital levels that are “well above current regulatory standards,” and handling record levels of loan loss reserves to serve as another buffer from potential economic shakeups. Accounts are insured through the Federal Deposit Insurance Corporation up to at least $250,000.
The Cornerstone Credit Union League says the credit union system is “well-capitalized” and member funds are protected. Credit union deposits are federally insured by the National Credit Union Share Insurance Fund up to at least $250,000 per individual depositor.
KVOE News contacted Citizens State Bank, ESB Financial, Lyon County State Bank and Emporia State Federal Credit Union for this story. All said their positions are strong.
The statements follow the recent failure of Silicon Valley Bank and Silvergate Bank in the United States, as well as an emergency infusion of over $30 billion into First Republic in the US and $50 billion for Credit Suisse overseas. The Bankers Association says the US closures appear to be outliers and are not indicative of the financial strength seen in other banks across the country, including those in Kansas.
