FOR IMMEDIATE RELEASE
Community Banks Safe and Sound
FDIC-Insured Deposits Always Safe in Community Banks
Washington, D.C. (August 10, 2011)--The Independent Community Bankers of America (ICBA) today said that the nation’s nearly 7,000 community banks remain safe and sound and are the bright spot in the nation’s economy despite the volatile financial markets on Wall Street.
“Local community banks are brick-and-mortar financial institutions that are safe, sound and secure, and continue to lend” said Sal Marranca, ICBA chairman and president and CEO of Cattaraugus County Bank in Little Valley, N.Y, “They remained strong throughout the economic crisis and will continue to serve as economic pillars of strength within their communities, even during this volatile time.”
To get our nation’s economy back on a solid growth track, ICBA is urging Congress and the administration to continue their efforts to get deficit spending under control and ensure that the trajectory of debt and deficit are heading in the right direction.
“As our nation’s leaders work to address the fiscal and economic volatility in our markets, we want to reassure our customers that they need not worry about the stability of their community bank and the safety of their money,” Marranca continued. “We value our relationship with our customers and our communities, and we want everyone to feel secure—both now and well into the future.”
ICBA is reminding consumers that deposits held in FDIC-insured community banks are guaranteed by the federal government for up to $250,000 per depositor. Also, there is unlimited deposit insurance on non-interest-bearing demand deposit accounts (DDAs) as part of the extension of the Transaction Account Guarantee program (TAG), which continues until the end of 2012. With this unlimited insurance, consumers and small businesses can rest assured that these demand deposits are safe.
“No depositor has ever lost a penny of FDIC-insured funds,” Marranca said. “If customers have any questions concerning the safety of their deposits, ICBA urges them to speak with their community banker, who will explain how FDIC insurance works and how community bank customers are protected.”