Residents of small towns in Kansas might think that the much-talked-about banking crisis, currently in the headlines, might not affect them. For the most part, they would be correct. But bad practices at the Silicon Valley Bank and the Signature Bank found themselves unable to supply money to their depositors who were depending upon their funds to operate private businesses. Quick action by the Federal Reserve and FDIC led to action by the Federal Government to guarantee all deposits in both banks, and hopefully, avoid the same crisis among other lending institutions. While both banks have been seized and placed up for sale, there is every reason to think our borrowing, depositing and check writing can continue, without delay, among banks across America. That brings us back to where most Kansas banks are today — in private hands, as community banks. They did not get heavily invested into crypto financing, as SVB and Signature did. And, community bankers still know their reason for existence, which is to serve the consumers who make deposits and borrow funds through their banks.
Source: Cowley CourierTraveler
