FAIRLEA, WV (WVNS) – The government is taking steps to make sure customers from failed banks aren’t hung out to dry – while also trying to reassure Americans that these are isolated problems.

The federal government announced emergency actions after the collapse of Silicon Valley Bank on Friday- and the closure of Signature Bank in New York over the weekend.

The Treasury Department, Federal Reserve, and Federal Deposit Insurance Corporation announced they will ensure depositors have full access to their money on Monday, March 13.

The emergency actions taken by the government to protect customers of those banks could be extended to some of those regional banks – if any of them should fail.

The collapse of these banks is stirring fears of a broader upheaval. 59News reached out to a local bank President about what kind of effect these closures could have on people here in our local communities.

In a statement, Jim King, President and CEO of the Bank of Monroe, and Chairman of the West Virginia Bankers Association told 59News:

“The recent Bank collapses in California and New York are unfortunate incidents that could likely have been avoided.  These failures are in no way a reflection on community banking in our area.

Most if not all community banks that I am aware of are very well capitalized and have conservative banking practices.  The core deposit base of most WV Banks are individual consumers that are not as volatile as some larger regional and national banks.” 

There are misunderstandings that deposits are only insured up to 250,000 but if you are fortunate enough to have large amounts of cash holdings it is possible to have your deposits insured up to 3,000,000.00.  Your local bank can help with more detailed information or you can log on to FDIC.gov for more information.”

Jim King, President and CEO of the Bank of Monroe, and Chairman of the West Virginia Bankers Association