In the wake of banks closing in California and News York the Nebraska Bankers Association says the state’s banking industry remains a source of strength and stability.
“Nebraska banks currently have strong capital levels and, quite frankly, have record levels of loan loss reserves, which allows them to absorb economic shocks,” NBA President and CEO Richard Baier tells KLIN News. “We’re very comfortable that our banks are in a strong position to help their communities grow and thrive over the long term.”
Baier says the recent bank closures appear to be outliers and not reflective of the norm for banks across America and Nebraska. He says 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,” Baier says.
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.