More than 160-member credit union executives joined in yesterday’s Zoom meeting hosted by CCUA’s President/CEO Ron McLean to share and discuss important aspects surrounding Silicon Valley Bank’s recent collapse and a credit union response. (Click HERE to view a recording of the meeting.)

Joining in the call was CUNA’s Chief Economist Mike Schneck, who offered his insights, citing his almost 40 years of experience in the financial services industry. “I can’t think of too many examples of institutions that operated with this level of extreme concentration risk,” he said. “That extreme concentration risk is a real differentiator. You don’t see that in credit union land.”

Schneck pointed out that 95 percent of Silicon Valley Bank’s deposits were uninsured. The average among credit union is 8 percent. He went on to say, “I think the decision that was taken on the part of the Fed, the FDIC and the Treasury Department to protect all deposits was a game changer and will provide a large degree of assurance in the marketplace that should be very, very, helpful, not just for the banking industry but for credit unions as well.”

In addition to hearing from Schneck, the meeting also provided an opportunity for member to discuss and share their own observations and communication plans intended to instill peace of mind among their members and a confidence knowing that their deposits remained safe and secure within the credit union.

While all agreed to maintain communication surrounding the ongoing developments with SVB, it was pointed out that NCUA’s website, MYCreditUnion.Gov, remained a valuable resource for all credit unions in developing their messaging to members.

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