Nebraska Bankers Association says state’s industry remains strong

Local reaction on recent bank closures
Published: Mar. 13, 2023 at 11:36 AM CDT
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LINCOLN, Neb. (WOWT) - Nebraska banking officials believe the state’s banking industry is largely unaffected by the closures of large banks in New York and California.

The Nebraska Bankers Association issues a statement following the failures of New York-based Signature Bank and California-based Silicon Valley Bank.

“Nebraska’s banking industry remains a source of strength and stability,” the Nebraska Bankers Association said. “They maintain strong capital levels and record levels of loan loss reserves, allowing them to successfully absorb economic shocks. Nebraska bankers take pride in their strong relationships with customers and are invested in the economic growth and prosperity of the state.”

Nebraska banking officials say the two bank failures appear to be outliers and are “not reflective of the norm for banks across America and Nebraska.”

“The closed banks had significant exposure to volatile sectors including cryptocurrency. Nebraska banks have limited exposure to these types of industries.”

Sen. Pete Ricketts also spoke up on Twitter about the recent bank failures.

“I am closely following the news about Silicon Valley Bank and the actions taken by Federal and state regulators,” Ricketts said. “I’m especially grateful for our strong community banks in Nebraska. We saw firsthand their resilience during the pandemic as they worked diligently to distribute PPP loans. Our community banks continue to be institutions we can count on today.”

The recent bank failures are the first in nearly three years. Silicon Valley Bank’s collapse was the second-largest in U.S. history.