Silicon Valley Bank Impact and Credit Union Member Concerns

The collapse of Silicon Valley Bank on Friday is the second largest failure of a financial institution in U.S. history.  The bank was shut down and put under the control of the FDIC following a 48-hour bank run and capital crisis. While this was not a credit union failure, we recognize it may still create consumer concerns regarding the safety of their deposits. MnCUN and CUNA offer the following to help your staff members address any questions they may encounter from members.  

• All Minnesota credit union deposits are federally insured by the National Credit Union Administration (NCUA) per individual up to $250,000, just as bank deposits are insured by the FDIC.
• Minnesota Credit Unions want to reassure members their money is safe with a credit union.
• The NCUA insurance that all of our members have is meant to provide consumers’ confidence during times of uncertainty.
• The National Credit Union Share Insurance Fund was created by Congress in 1970 to insure members' deposits in federally insured credit unions. Administered by the NCUA, the Share Insurance Fund insures individual accounts up to $250,000, and a member’s interest in all joint accounts combined is insured up to $250,000.
• The Share Insurance Fund separately protects IRA and KEOGH retirement accounts up to $250,000.
• The Share Insurance Fund has the backing of the full faith and credit of the United States.
• Credit union members have never lost even a penny of insured savings at a federally insured credit union.

Other Resources:

• In addition to federal insurance, many credit unions offer additional private or excess deposit insurance. Visit MyCreditUnion.gov for more information about the National Credit Union Share Insurance Fund coverage for consumers.  
• CUNA has created a resource page with talking points and social media post options that address safety and soundness concerns.
• MnCUN Vice President Communications and Engagement, Andrea Molnau, was a guest on The Morning News with Vineeta Sawkar on WCCO Morning News and emphasized how credit unions are member-owned and deposits are insured.
• MnCUN Director of Governmental Affairs Ryan Smith, will be on the Wrong About Everything podcast to provide context and the credit union perspective today. The livestream begins at 4:30 p.m.
• The Federal Reserve is hosting an "Ask the Fed" webinar today to provide an overview of the Bank Term Funding Program and address frequently asked questions that have arisen since the program’s launch.

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Please do not hesitate to reach out if we can be of assistance. MnCUN will provide updated information on the Silicon Valley Bank situation as available.