Statewide Iowa — With the recent collapse of two U.S. banks, one based in California, the other in New York, some Iowans may be concerned about the stability of their local financial institutions.
Ron Sorensen, president and CEO of the Iowa Bankers Association, says there’s nothing to worry about, as the banks that failed were run much differently from how banks operate in Iowa.
That led to a critical drop in deposits, plus, Sorensen says the banks also had issues with their securities portfolios.
Sorensen says Iowa banks are typically relationship-based, and their biggest depositors are in areas like agriculture, small businesses, and local companies and manufacturers.
Iowa banks are well capitalized and highly liquid, Sorensen says, and they’re backed by FDIC insurance. Sorensen recommends customers talk with their local banking officials about the institution’s security. There are over 280 members of the Iowa Bankers Association.
John Sorenson. (IBA photo)
