What's New
Midland National Bank: Safe, Strong & Secure
As a common sense lender, Midland National Bank is highly capitalized, well-regulated and more averse to risk than big banks. In fact, the vast majority of our nation's banks, especially community banks, even in the midst of these difficult times, are still safe, strong and secure.
Washington, D.C. (July 15, 2008)––Cynthia Blankenship, chairman of the Independent Community Bankers of America (ICBA), and vice chairman and chief operating officer of Bank of the West, Grapevine, Texas, and Camden Fine, ICBA president and CEO, issued the following joint statement following some media reports on the current financial status of community banking:
"Some recent news reports and commentaries have raised concern about the safety of deposits in community banks. These reports are irresponsible and wrong. These are the facts: community bank customers' insured deposits are safe in their community banks. No one has ever lost a penny of deposits insured by the Federal Deposit Insurance Corporation held in community banks. No one. ICBA is dismayed at the misinformation being spread by media reports about the state of the FDIC insurance fund and the state of the banking industry. These reports only fuel unwarranted panic and fear among the general public.
“If you are having difficulties managing your finances, talk with your local community banker. Community banks are here to serve our communities,” said Blankenship. “Our relationships with our customers are very important to us. We want to keep our customers for the long-term.”
Know Myth from Fact...
Myth: Your money is safer in big banks.
Fact: No one has ever lost a penny of FDIC-insured deposits held in community banks. The FDIC insures deposits up to $100,000 per depositor and $250,000 for certain retirement accounts. If you have more than $100,000 at a community bank, you can still be fully insured if your accounts meet certain requirements. For example, accounts owned by a single person are separately insured from joint accounts or retirement accounts owned by that person. The FDIC's Electronic Deposit Insurance Estimator can determine your coverage. Community banks focus on the needs of local families, businesses and farmers, and their top executives are generally available on site to answer your questions directly and make timely decisions. Many of the nation's largest banks are structured to serve large corporations and have CEOs headquartered in office suites, not local banks.Myth: Your money is stored in a vault at the bank.
Fact: Community bank deposits are reinvested in your local economy. Your money on deposit will be used to make loans in the community that help your neighbors start a nearby business, purchase a home, or send a son or daughter to college. Continuing to hold deposits in community banks ensures the neighborhoods where you live and work will continue to grow and thrive.Myth: Community banks are undercapitalized.
Fact: The vast majority of our nation's banks, especially community banks, are strong, safe and stable. Community bankers are common sense lenders that don't engage in high-risk activities. Instead, they stick to the longstanding fundamentals of responsible banking, and always seek to serve the long-term interests of their customers and communities.Myth: The FDIC takeover of IndyMac Bancorp means my bank is at risk.
Fact: IndyMac Bancorp was taken over because, in part, depositors became fearful and attempted to close their accounts at once, destabilizing the bank. The overwhelming majority of the nation's banks are safe and well capitalized. As stated by FDIC Chairman Sheila Bair, IndyMac is only one of nearly 8,500 depository institutions operating in the United States and represents just 0.2 percent of banking-industry assets. There is little chance your bank will be taken over by the FDIC. And if that does happen, you will continue to have virtually uninterrupted access to your insured deposits.Myth: Community banks are involved in problems with subprime mortgage lending.
Fact: Community banks are common-sense lenders that have avoided subprime lending. There is no mortgage-lending crisis for community banks because they are well-run, highly capitalized, tightly regulated and more risk-averse than big banks. Community banks have money to lend homeowners for new purchases and to refinance existing mortgages. In spite of talk of a credit crunch, community banks are open for business.The FDIC insures deposits and protects depositors' funds in banks and savings associations. FDIC deposit insurance covers each depositor's account, dollar-for-dollar, up to the insurance limit, including principal and any accrued interest. Customers should look for an official FDIC sign at each teller window or teller station in their local community bank to know their institution is covered by FDIC insurance. According to the FDIC, insurance covers all types of deposits received by a financial institution in its usual course of business, including savings and checking accounts, NOW accounts, Christmas club accounts, and time deposits like certificates of deposit. Cashiers' checks, officers' checks, expense checks, loan disbursement checks, interest checks, outstanding drafts, negotiable instruments and money orders drawn on the institution are also considered deposits, and are protected by the FDIC.
The FDIC's Electronic Deposit Insurance Estimator (EDIE) is an interactive application that can help you learn about deposit insurance and calculate the insurance coverage of your accounts.
Do you have questions about Midland National Bank?
Please contact our Customer Service Department or call us at 313-283-1700
or for more information, go to ICBA's Resource Page on the Safety of Community Bank Deposits.
