In light of the recent troubling collapse of Silicon Valley Bank (SVB) and Signature Bank, I want to assure our members that SAFE remains financially sound, and our future is secure.
All financial institutions must make smart business decisions in the current rising interest rate environment. At SAFE, we have highly qualified and experienced experts who take a long-term and cautious approach in how we foster growth amid a quickly shifting economy. We are proactive in managing interest rate risk and purposefully maintain liquidity levels at a low-risk level. As a result of our focused efforts in mitigating these risks, SAFE is securely positioned to continue to serve our members and deliver on our mission.
The unfortunate situation surrounding SVB and Signature Bank is directly connected to their limited business models. They both faced significant exposure due to the concentrated risk of serving niche and limited industries. Their focus on serving only specific industries buffeted by recent economic uncertainty opened both banks to severe risk.
Overall, the nation’s banking system is in good shape, and SAFE can withstand significant shocks such as these with our strong and diversified member base. We are more resilient today than ever.
SAFE is committed to managing these risks with the utmost priority and diligence to ensure the credit union’s continued safety and soundness, and above all to serving our members and community.
Rest assured; we will always do what’s in the best interest of our members. Thank you for being a valued member of SAFE Credit Union.
