Serving Clovis, Portales and the Surrounding Communities
Serving Clovis, Portales and the Surrounding Communities
The financial sector has been under intense scrutiny after the failure of two large financial institutions that specialized in high-risk industries, such as the cryptocurrency sector.
Some depositors in local communities might be wondering what this means for their hard-earned money.
But consumers − and policymakers in Washington − must distinguish between community banks, which have been serving consumers and small businesses on the High Plains, and these large banks with a much different business model and risk profile.
The financial institutions recently closed by regulators were nothing like the local community banks that help the nation’s consumers, small businesses and their local communities thrive. That outlook means community banks focus on established banking practices that have served our community for generations.
As the FDIC’s latest Quarterly Banking Profile attests, community banks’ asset quality is favorable, total deposits are stable, and capital ratios remain strong.
The Deposit Insurance Fund, which the FDIC uses to insure deposits, has a record high balance. Americans do not have to worry about the safety of their deposits. That is especially true for customers of community banks.
A unique and time-tested model, which is followed by community banks in communities just like Clovis-Portales all across the county, is best suited for U.S. consumers and business owners.
We stress one-on-one, face-to-face relationships with the small businesses and residents we serve. We know what small businesses need because we are one.
As responsible financial stewards, community banks should be exempt from restoring losses to the Deposit Insurance Fund, and there is no need for new regulatory burdens from Congress or financial regulators. Small lenders and their customers shouldn’t have to pay for the miscalculations and speculative practices of large financial institutions.
Kent Carruthers is president of The Citizens Bank of Clovis. Contact him:
