Banking experts say weekend collapses are no cause for worry in Virginia
CHARLOTTESVILLE, Va. (CBS19 NEWS) -- Following the collapse of Silicon Valley Bank and Signature Bank, many Americans are worried about what’s next.
Andy Farmer from the Virginia State Corporation Commission, which regulates the banks in Virginia, said Virginians don't need to worry about their bank or money.
He said SVB and Signature had unique risk factors that the Virginia banking industry does not.
For example, SVB invested in startup technology firms, and Signature had significant deposits from the cryptocurrency industry.
Glenn Rust, CEO of Virginia National Bank, said people shouldn't be calling this a crisis.
He said the Federal Reserve would normally announce the failure of a bank and its buyer at the same time, but it didn't, which caused an unneeded frenzy for everyone.
He said these problems don't happen at community and regional banks.
"We bank folks like you. We bank folks that we know, we bank businesses in town that don't have that capital problem that a lot of the venture tech companies do have," Rust said.
He said most people think the FDIC, an agency designed to support the stability and public confidence in the nation's financial system, only insures deposits up to $250,000.
But at Virginia National Bank and many others, they work with millions of dollars that are still insured by the FDIC, so there's nothing to worry about.