A Notice from Allied Healthcare FCU about Silicon Valley Bank
As you might be aware, the failure of Silicon Valley Bank is making news headlines and may potentially cause concern among consumers, businesses, regulators, and lawmakers. The story is evolving and it is natural to wonder what effect SVB’s failure might have on your own financial institutions, including Allied Healthcare Federal Credit Union.
We are paying close attention to the situation and what ramifications it may have on you and the rest of our members. Here are a few things we want you to know:
- Silicon Valley Bank was a niche bank serving a particular set of customers within the technology industry, including innovative tech start-ups, entrepreneurs, and venture capital firms. The bank was focused on a limited sector, which significantly increased its risk profile.
- Credit unions are not-for-profit financial cooperatives owned by their members to serve those members’ interests, offering traditional financial products and services to local consumers and small businesses in their communities. We are not subject to big-profit pressures from investors/stockowners (unlike many banks).
- Credit unions are among the most well-capitalized financial institutions, maintaining equity reserves and liquid investments that prioritize needed safety and soundness for their members.
- All deposits at federally insured credit unions like Allied Healthcare FCU are protected by the National Credit Union Share Insurance Fund, a separate fund not associated with the Federal Deposit Insurance Corporation for banks.These credit union deposits are insured for up to $250,000 per individual depositor. Credit union members have never lost a penny of insured savings at a federally insured credit union, and our industry’s deposit insurance fund has the backing of the full faith and credit of the U.S. government. See MyCreditUnion.gov for more information.
We thank you for being a member of Allied Healthcare Federal Credit Union and we take your faith in us and the credit union model seriously. It’s why we stay diligent in a quickly shifting economic climate and keep you aware of issues in our and around our industry.
-The AHFCU Team