Area banks should not be affected by recent national bank crisis
RAPID CITY, S.D. (KEVN) - Both Silicon Valley Bank in Santa Clara, California, and Signature Banks in New York recently collapsed causing a ripple effect in some states.
Federal regulators are stepping in to help fix the crisis, and the Justice Department is investigating the mishandling of billions of dollars worth of investments.
While the ultimate impact is still unknown, some people are asking, will this affect banking in the Black hills?
“Our region, it’s very strong and I think it’s a totally different way of doing banking. It’s a traditional bank and it’s community banking. We know our customers, We take the deposits in, and We lend it back out in our local communities,” said President and CEO, Jack Lynass of Black Hills Community Bank.
Although the banking turmoil is mainly affecting customers in California, President of Pioneer Bank and Trust Dylan Clarkson says he’s been receiving calls since the day of the collapse from customers who want to make sure their assets are safe.
“The types of calls we’re getting are very general in nature. We’re seeing across the state, a very stable deposit base, and a lot of citizens just want to understand if these bank failures were like their downtown Hometown Bank, and They’re just really not,” said President and Chief Executive Officer, Dylan Clarkson of Pioneer Bank and Trust.
According to AP News, the collapse of the two banks in Santa Clara make for the largest bank failure since Washington Mutual in 2008. The failure impacts more than just the two banks.
Silicon Valley Bank had catered to venture capitalists. However, in the Black Hills, banking professionals say customers should be fine.
“Again, in South Dakota, I don’t think there’s anything to be afraid of,” said Lynass.
Copyright 2023 KEVN. All rights reserved.