Is My Money Safe?

In short, as a member of Zia Credit Union, yes your money is safe. 

Over the course of the last week, two banks “failed” in the United States. First, what does it mean for a bank to “fail?” When a bank fails, it means that the bank is unable to meet its financial obligations to depositors, creditors, or other counter-parties. This can happen for a variety of reasons, including poor management, risky lending practices, a lack of liquidity, or economic downturns.

Second, these were not normal banks. Silicon Valley Bank worked mostly with technology start-ups in California, and Signature Bank of New York was a crypto-focused bank. They were not your normal consumer financial institutions.

Much of what you may be reading and seeing in the media is fueling unnecessary anxiety over the safety of banks around the world. A recent joint statement from the Federal Reserve and Federal Deposit Insurance Corporation (FDIC) had this to say:

“The U.S. banking system remains resilient and on a solid foundation, in large part due to reforms that were made after the financial crisis that ensured better safeguards for the banking industry. Those reforms combined with today’s actions demonstrate our commitment to take the necessary steps to ensure that depositors’ savings remain safe.”

As a member of Zia Credit Union, here are some things you should know:

1.     Zia Credit Union is insured by the National Credit Union Share Insurance Fund (NCUSIF), which is administered by the National Credit Union Administration (NCUA). The NCUSIF provides insurance coverage of up to $250,000 per individual depositor per account type, similar to the FDIC coverage for banks.

2.     As a federally insured credit union, we undergo regular safety and soundness exams. We continue to be rated as a “well-capitalized” credit union, meaning we maintain a strong financial position, with sufficient capital to cover potential losses and unexpected events. In the United States, credit unions are required to meet specific regulatory capital requirements established by the NCUA.

Zia Credit Union remains safe, sound, highly liquid, and one of the top-performing community financial institutions in New Mexico. As always, thank you for being a member. If you have any questions or would like to further discuss the safety of your funds, please call us at (800) 392-7629, or visit one of our branches and ask to speak with a branch manager. As always, thank you for being a member.