by Mackenzie Foster
The national bank fallout that has been in recent headlines has many people worried about the banking industry, but do people in Alabama have anything to worry about?
“I’ve heard about it and knew it was going on, but I didn’t know the exact reason nor did I know if it would affect me and who I bank with,” said Jordan Wells, a sophomore psychology major from Dothan, Alabama.
The reasoning for the fallout is the national banks, like Silicon Valley Bank, would invest in start-up technology companies that failed later down the road.
Scott Latham, the President and CEO of the Alabama Bankers Association, wants people to know that Alabama banks are different than banks that have been in recent headlines.
“Alabama banks are very diversified in our customer bases and the people that do business with us, and the deposits are very, very safe,” Latham said.
Latham also wants people to know that this bank crisis should not affect Alabama in any way.
“There is absolutely no reason at all for Alabamians to worry about their money, their deposits,” Latham said.
The national bank fallout is being compared to the financial bank crisis in 2008, however John Dove, an Associate Professor of Economics, believes that it’s too early to jump to this one conclusion.
“I think it’s a little early to make comparison, at least as of right now, there doesn’t seem to be any strong indications that this is something systemic within the banking industry,” Dove said.
With the worries and questions that come with a huge crisis like this, some people are wondering if there is anything they can do to stay safe with their banks.
Latham suggests that people walk into their banks and ask the questions that they want answered.
“Questions of bankers are important, resources at the FDIC are important,” Latham said.
Dove also has some advice for people that want to know how to be a little more aware of their banking facility.
“Make sure that you are banking with an institution that’s FDIC insured, so that your deposits are insured in the event that a bank did fail,” Dove said.
For more information on bank safety and awareness,
Comments