In short, as a member of Central Valley Firefighters Credit Union, yes, your money is safe.
Over the course of the last week, two banks “failed” in the United States. First, what does it mean for a bank to “fail?” When a bank fails, it means that the bank is unable to meet its financial obligations to depositors, creditors, or other counterparties. This can happen for a variety of reasons, including poor management, risky lending practices, a lack of liquidity, or economic downturns.
Second, these were not normal banks. Silicon Valley Bank worked mostly with technology start-ups in California, and Signature Bank of New York was a crypto-focused bank. They were not your normal consumer financial institutions.
Much of what you may be reading and seeing in the media is fueling unnecessary anxiety over the safety of banks around the world. A recent joint statement from the Federal Reserve and FDIC had this to say:
“The U.S. banking system remains resilient and on a solid foundation, in large part due to reforms that were made after the financial crisis that ensured better safeguards for the banking industry. Those reforms combined with today’s actions demonstrate our commitment to take the necessary steps to ensure that depositors’ savings remain safe.”
As a member of CVFCU, here are some things you should know:
- Central Valley Firefighters Credit Union is insured by the National Credit Union Share Insurance Fund (NCUSIF), which is administered by the National Credit Union Administration (NCUA). The NCUSIF provides insurance coverage of up to $250,000 per individual depositor, similar to the Federal Deposit Insurance Corporation (FDIC) coverage for banks.
- As a federally insured credit union, we undergo regular safety and soundness exams. We continue to be rated as a “well-capitalized” credit union, meaning we maintain a strong financial position, with sufficient capital to cover potential losses and unexpected events. In the United States, credit unions are required to meet specific regulatory capital requirements established by the NCUA, and in California, requirements of the Department of Financial Protection and Innovation (DFPI).”
CVFCU remains safe, sound, highly liquid, and one of the top performing financial institutions in California. As always, thank you for being a member.