Washington, D.C. (April 28, 2023) — Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on today’s Federal Deposit Insurance Corp. report on Signature Bank of New York.
“Today’s FDIC report on the failure of Signature Bank of New York demonstrates the risks the crypto industry poses of contaminating the banking system and shines light on the stark differences between certain large banks and the Main Street community banks that continue to focus on meeting the needs of local communities. Signature’s vulnerability to contagion from the crypto industry and the FDIC’s ineffective oversight of this novel business contrast sharply with community banks’ safe, sound, relationship-based, and heavily regulated banking model, which is well understood and is built to withstand the test of time.
“Policymakers must distinguish the risky practices of larger institutions from community banks’ relationship-based approach as they consider policies to improve large bank oversight and to establish a regulatory agenda for digital assets. Meanwhile, ICBA will continue educating the public on the benefits of banking locally with a trusted community bank.”
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services.
With nearly 50,000 locations nationwide, community banks employ nearly 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding $5.8 trillion in assets, $4.8 trillion in deposits, and $3.8 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers' dreams in communities throughout America. For more information, visit ICBA's website at www.icba.org.