You may have recently heard the news about the stability of the financial service and banking industry. As you may be aware, Silicon Valley Bank (SVB) and Signature Bank have experienced financial difficulties that have recently resulted in their closures on Friday, March 10 and Monday, March 13, respectively. This, understandably, has prompted questions about the future of other financial institutions. It should be noted that each financial institution is unique and operates independently of one another.
The closure of one bank does not necessarily indicate other institutions are also at risk. Both SVB and Signature Bank were highly leveraged in high-risk deposits tied to Venture Capitalists and large amounts in cryptocurrencies. These banks had over half of their loans in venture capital and private equity firms with little guarantees. It should be noted that Diamond Credit Union does not hold cryptocurrencies on deposit, nor do we have loans with venture capital or private equity.
At Diamond Credit Union, we take our responsibilities very seriously and have a long-term history of financial stability. Our financial records are regularly audited by external sources to ensure this stability. Additionally, we are regulated and protected by the National Credit Union Administration (NCUA). Our adherence to strict regulations and guidelines further ensures the protection of our financial health and our members’ deposits.
Diamond Credit Union is a member-owned, not-for-profit credit union, we have always provided lower loan rates, higher deposit yields and fewer fees than the for-profit banks and will continue to do so. We thank you for trusting us.
President & CEO