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(Washington, DC) – The DC Department of Insurance, Securities and Banking (DISB), the Founders Bank, and Industrial Bank are reassuring District residents, in the aftermath of the closure of Silicon Valley Bank in California and Signature Bank in New York, that community banks are safe and financially stable and customers should continue to do business with these financial institutions. DISB is the agency responsible for regulating District-chartered banks, and Founders Bank and Industrial Bank are two prominent community banks in the District.
“There is understandably confusion among some District residents after hearing the unfortunate news about Silicon Valley Bank and Signature Bank,” said DISB Commissioner Karima Woods. “The Bowser Administration wants all District residents to know that those bank closures are not connected to our community banks in the District, and the District is part of the broader U.S. bank regulatory system that is in place to prevent problems like the ones encountered by Silicon Valley and Signature. We fully support Industrial Bank and Founders Bank.”
DISB also said that District residents should be reassured to know that District chartered banks are routinely monitored and funds on deposits are backed by the Federal Deposit Insurance Corporation (FDIC). DISB, along with its federal counterparts, consistently monitors its chartered banks to ensure they follow regulations and requirements and that DC financial institutions are operating in a safe and sound manner. Customers trust and faith in the banking system is paramount to the financial service industry given the role that banks play in the system.
“We appreciate the work DISB is doing to maintain a secure regulatory system,” said Industrial Bank President B. Doyle Mitchell Jr. “At Industrial Bank, our deposits are safe and those who bank with us can be confident in the strength of our institution. We look forward to continuing to grow and serve our customers in the District.”
“It is to be expected that people might be concerned about what occurred in the banking system this week,” said Founders Bank President Martin McCarthy. “Founders Bank joins Industrial Bank and DISB in proudly proclaiming that our banks are safe and strong.”
For those interested in learning more about banking regulation in the District of Columbia, visit disb.dc.gov or call (202) 727-8000.