Dual bank failures make customers nervous, but experts say there's no need

Monday, March 13, 2023
CHICAGO (WLS) -- News of two banks collapsing may be upsetting for those who are customers of Silicon Valley Bank or Signature Bank New York, but for those who are not?

"I'm not recommending people get extremely nervous about this situation," said Professor Abol Jalilvand, who teaches finance at Loyola University's Quinlan School of Business.

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"Given the information that we have, I think the situation is very controlled," he said. "The banking industry and financial institutions are well-prepared, they have lots of capital, they can withstand these kinds of thigs."

Locally, Silicon Valley Bank had an office in Loop but it was closed Monday.



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A spokesperson for the Illinois Department of Financial and Professional Regulation said they have been monitoring Illinois banks, releasing a statement saying in part, "At this time, the Department is not aware of concerns about specific institutions in Illinois "

Depositors of the two banks have their accounts of protected by the federal government thanks to protections set in motion after the Great Depression.
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