Wisconsin Banks Remain Safe, Sound, and Resilient WBA works to keep member banks informed, updated with latest news

By Cassandra Krause

In the wake of recent out-ofstate bank failures, the Wisconsin Bankers Association (WBA) has worked on behalf of our membership to reassure the public that their money is safe in a Wisconsin bank.

How Silicon Valley Bank in California Differed From Wisconsin Banks

» Silicon Valley Bank (SVB) was heavily connected to the tech sector, which made it vulnerable to the booms and busts suggestion. Because Silicon Valley Bank was connected to the tech industry — both on the loan and deposit side — it was not well diversified. This is a stark difference from Wisconsin banks of all sizes, which are much more diversified across different business and personal sectors.

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Cassandra Krause

deposits (largely from venture capitalists that deposited tech investment money in the bank). In contrast, Wisconsin banks have a far higher percentage of insured deposits.

» SVB grew incredibly fast, going from $56 billion in 2018 to over $209 billion in 2022. In the span of just one year, from December 31, 2020 to December 31, 2021, SVB nearly doubled in size. During this short period, the bank grew from $114 billion to $209 billion. No Wisconsin bank has ever grown like this.

WBA’s Proactive Response to Out-of-State Bank Failures

» WBA worked quickly to keep the membership and news media informed Over the weekend immediately following the March 10, 2023 failure of SVB, WBA President and CEO Rose Oswald Poels issued a special edition Executive Letter to member-bank leaders, followed by a statement to the media on Monday morning, April 13, 2023. As the situation evolved, Oswald Poels issued a follow-up Executive Letter on Tuesday, April 14. To calm fears and provide information, WBA leadership gave numerous interviews to television, print, and radio news outlets and provided support to members who were working with their local media.

» WBA created resources for members to share with their customers

The Wisconsin Bankers Association and Wisconsin Bankers Foundation maintain a Consumer Resources Hub, available at wisbank.com/ consumer-resources. Here, bankers can find printable one-pagers on topics such as FDIC insurance as well as social media content, including graphics designed to bolster consumer confidence in Wisconsin banks.

» SVB had large, uninsured deposits. Less than 10% of SVB’s deposits were insured as they were very large

Through the Wisconsin Banker Daily e-newsletter, webinars, social media, and other channels, WBA worked to ensure that WBA members had the latest information and resources to navigate the situation at their banks and in their communities.

Wisconsin Bankers Foundation

» WBA worked efficiently with regulators, elected officials, and industry groups WBA staff closely monitored the situation and kept in close contact with Federal Deposit Insurance Corporation (FDIC) officials, federal and state legislators, and our banking trade group partners across the country to ensure that Wisconsin’s banking industry was well represented and stayed informed of the latest developments.

Wisconsin’s banking industry is in a solid position and the recent anomalous events at out-of-state banks do not change that. The banking system in Wisconsin and across the U.S. remains well capitalized and resilient. The regulators’ quick response, along with the proactive messaging approach from WBA and other banking industry leaders, were effective in containing the issue and reassuring the public. As always, WBA is committed to keeping our members informed on issues impacting the industry and providing timely resources to support your work at your bank and in your communities.

Krause is WBA communications manager