The financial sector has been under intense scrutiny after the failure of two large banks specializing in high-risk industries. Depositors might be wondering what this means for them, but consumers – and elected policymakers – must distinguish between community banks like Rollstone Bank & Trust and large banks who operate much differently than us.
The banks recently closed by regulators were nothing like the local community banks that help people, businesses, and communities thrive. At the end of 2022, Silicon Valley Bank held $213 billion in assets and Signature Bank of New York had $89 billion. Both suffered from a concentrated balance sheet. Amid concerns about each bank’s liquidity, their customers started withdrawing funds very quickly. Regulators closed the banks to prevent further withdrawals and to ensure that the FDIC would be able to make depositors whole.
Rollstone’s time-tested model, followed by community banks across the country, focuses on careful asset-liability management, and is best suited for consumers and business owners. We are dedicated to looking out for our customers’ long-term interests and will remain here through every stage of the economic cycle, as we have been for 177 years.
Given our cautious approach, Washington lawmakers should ensure that regulations resulting from the SVB and Signature Bank closures do not harm community banks like ours.
As responsible financial stewards, community banks should be exempt from restoring FDIC losses, and policymakers should say no to new regulatory burdens from Congress or regulators. Small lenders and their customers shouldn’t have to pay for the poor management practices of large banks.
Given the continued stability of Rollstone Bank & Trust and others just like us, lawmakers need to ensure that policy changes support community banks and only target the risky practices of larger lenders.
These bank failures highlight the strengths of banks like Rollstone. We’re ready to explain our business model, to compete against larger institutions for your deposits, and to meet you anytime, anywhere to show members of our community that our responsibility is to you – not to Wall Street or Silicon Valley.
— Martin F. Connors Jr., is president & CEO of Rollstone Bank & Trust
