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What Iowans need to know about the bank collapses in New York and California

Local financial experts say don't want what's happening on the coast to put you in a panic. Their message: your money is safe here in Iowa.

DES MOINES, Iowa — While the country has its attention turned toward the bank collapses in New York and California, Iowa's banking experts say Iowans have no reason to worry.

"I think what most Iowans really are interested in is that their money in their local bank is safe," said Iowa Bankers Association President and CEO John Sorensen. "And we're confident that that is the case. We're better than national averages when it comes to capital, liquidity, loan quality and just key things that we look at every day in the financial sector."

Sorensen says the banks that collapsed primarily focused on serving industries like tech startups and cryptocurrency. 

In that environment, he says larger sums of money move quickly, and became volatile with changing interest rates. 

"Iowans need to understand is that these two banks had a business model, very different than what we see with a typical Iowa community bank," Sorensen said. "If you put them side-by-side, the two would be unrecognizable in their differences."

For the vast majority of Iowans, your deposit is secure. Credit union and bank deposits are federal insured to the same amount. 

"Iowa credit union deposits are insured by the federal government up to $250,000," said Jaimie Miller, Vice President of Iowa Credit Union League. "So you can rest assured that your assets at your credit union are safe and secure. We've got the Iowa credit union division and the NCUA or the National Credit Union Administration, that actually provides regulation and oversight to ensure that credit unions are safe and sound in Iowa."

"I think in our state, we're blessed," added Sorensen. "First of all, that we've got a strong banking system. Second of all, to have the number of banks we do, and that that variety in that competition tends to promote a better outcome for our consumers and businesses."

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