My Turn: A banker on the banking industry
July 25, 2008
Lately, there have been a number of news stories focusing on troubles in the banking industry. While a few companies within our industry have faced difficulties, I would like to state that the vast majority of community banks like Plumas Bank, continue to offer a safe place to deposit and remain a stable source of personal and business loans despite the talk of a national credit crunch.
I understand that during these economic times people are concerned about the safety of the money they have in their bank. The federal government has insured their funds held in a FDIC-insured community bank for up to $100,000 and $250,000 for certain retirement accounts.
In spite of the headlines about the challenges facing Wall Street financial institutions, community banks are open for business. Community banks like Plumas Bank are navigating through this economic cycle because they are well run, highly capitalized and among the most highly regulated financial institutions in the country. Our customers can bank with confidence knowing their money is safe because it is insured by the FDIC. Since the FDIC was founded in the 1930s, no one has ever lost a penny of FDIC-insured funds.
The FDIC insures deposits and protects depositors’ funds at all banks, including community banks like Plumas Bank. FDIC deposit insurance covers each depositor’s account, dollar-for-dollar, up to the insurance limit, including principal and any accrued interest. An official FDIC sign is posted at each teller window or teller station in their community bank signifying their funds are covered by FDIC insurance.
According to the FDIC, insurance covers all types of deposits received by a financial institution in its usual course of business, including savings and checking accounts, NOW accounts, Christmas club accounts, and time deposits like certificates of deposit. Cashiers’ checks, officers’ checks, expense checks, loan disbursement checks, interest checks and money orders drawn on the institution are also considered deposits, and are protected by the FDIC.
The 8,500 community banks across the country like Plumas Bank are the foundation of our nation’s diversified financial system. The economic challenges we’re seeing now is exactly why the nation needs community banks like Plumas Bank ” to ensure that credit remains consistently and widely available in good times and bad.
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Today, consumers and communities in northeastern California can continue to rely on community banks like Plumas Bank to serve their financial needs as we have since 1980.
If you have any questions about FDIC insurance, the banking industry or Plumas Bank please feel free to contact me at 283-7305, ext 8902, or talk with your local community banker. Community banks are here to serve our communities. Plumas Bank employees and shareholders live in our communities. Our customers are very important to us. We want to make sure your financial needs are being served in a safe and prudent manner.