Silicon Valley Bank collapsed on Friday after a run on deposits drove the Northern California institution into insolvency, marking the largest bank failure since the financial crisis.

 

SVB’s downfall, which threatens to upend the U.S. venture capital industry, is sparking fears that other small and regional banks could face similar pressure amid soaring interest rates and shrinking deposits.

 

President Biden on Monday told Americans the nation’s financial systems were safe, seeking to project calm following the swift and stunning collapse of two banks that prompted fears of a broader upheaval.

 

The president said he’d seek to hold those responsible accountable, and pressed for better oversight and regulation of larger banks. And he promised no losses would be borne by taxpayers.

 

Locally, Colleen Cooper, SVP Regional Manager Branching with Truity Federal Credit Union tells Bartlesville Radio that Truity is well positioned and should not be affected. She also reminds that neither the state or federal government has bailed out a credit union. Cooper also said that Truity would never turn to a venture capital firm to raise equity.

 

Charles Pilkington with Regent Bank in Bartlesville told us, "Oklahoma banks are very conservative andvery sound and there is nothing to worry about.We are not doing an speculative lending nor are we dealing with crypto." Pilkington added, "We offer safety and soundness to our clients on multiple fronts. We are celebrating our 14th record year in a row and our capital and loan loss reserves are at their highest levels ever." Pilkington said, " Regent is in the top 5% US banks for profitability. 

 

Kim Moyer President/CEO, Bartlesville region Arvest Bank said, "Arvest Bank maintains strong capital levels, which exceed regulatory requirements, and carries adequate reserves for any estimated loan losses. In this challenging interest rate environment, it is important for financial institutions to manage their liquidity and source of funds to be prepared for a reduction in the deposit base."

A statement from Arvest Bank says 'Arvest has a strong and diverse deposit base. If needed, Arvest also has diverse funding options and available borrowing capacity with the Federal Home Loan Bank of Dallas, the Federal Reserve, and other private sources.'

Coffeyville's Community State Bank's COO/Executive VP Julie Voelker said,"The Community Banks here in the Midwest are well capitalized and finacially strong and are in a very different scenario then what happened at Silicon Valley and Signature Banks with their lending and ivnestments. Here in the Midwest, we are loaning to our local businesses, farmers and industries that we know very well."