Joint Statement to Iowans on the Stability of Financial Institutions During COVID-19 Pandemic
DES MOINES, IOWA (March 26, 2020) — The Iowa Bankers Association, the Community Bankers of Iowa and the Iowa Credit Union League collectively represent Iowa financial institutions, including commercial banks, thrift institutions and credit unions.
As Iowa and the nation face a global pandemic, it’s a time for all of us to support each other as we mitigate the impact of the novel coronavirus (COVID-19). In our industry, we’re doing the same. We’re coming together to inform Iowans that they can continue to expect stable and uninterrupted delivery of important financial services, such as access to money and credit, throughout the duration of this crisis.
The vitality of Iowa residents, small businesses, farmers and communities during this time is critical. That’s why financial institutions throughout the state remain open for business, and they will continue to be available to meet customers’ financial needs. State and federal regulations require financial institutions to be prepared for situations like pandemics, with tested and proven business continuity plans and procedures that ensure they continue to serve their communities through difficult times.
Most banks and credit unions are encouraging use of their online, mobile, ATM and drive-thru options, and they have limited access to physical locations to protect customers and staff. These retail safety measures are designed to protect the health of our employees and customers, while providing continuous access to your financial resources.
Iowans can be assured that their money is protected and they will continue to have access to it. Many of Iowa’s banks and credit unions work closely with SHAZAM, an Iowa-based debit services provider, to ensure the electronic payments system is available and reliable. These services mean consumers have access to their funds through ATMs, at merchant point-of-sale and with an array of mobile applications. This access is a certainty in uncertain times.
In terms of protection, deposits at banks and credit unions are insured up to $250,000 per individual depositor. Deposit insurance is backed by the full faith and credit of the U.S. government, and no depositor has ever lost a penny of federally insured deposits. Bank deposits are insured by the Federal Deposit Insurance Corp. Learn more. Credit union deposits are insured by the National Credit Union Share Insurance Fund. Learn more.
Additionally, banks and credit unions are working with consumers and businesses who have been economically impacted by COVID-19, providing targeted relief options such as forbearance, fee waivers and loan modifications. Opening new and expanding existing sources of credit for small businesses and consumers are equally high priorities. As industry trade associations, we are in constant contact with federal, state and local officials to strategize how to coordinate available public and private financial resources, and we are exploring all possible options for expanding access to credit, together with our regulators and other government agencies. Customers should watch for service announcements from their financial institution — monitoring its website and social media channels — for updates.
About Iowa Bankers Association
The Iowa Bankers Association represents Iowa banks and savings institutions. Iowa bankers are committed to the values of honesty, hard work and community service, and have been a trusted resource for Iowans for more than 100 years. Iowa banks offer FDIC insurance and lend $79.4 billion to help individuals, business owners and agriculture. More than 35,000 Iowans work at an Iowa bank, and banks support their local communities each year with more than $30 million in donations and 650,000 volunteer hours. To learn more, visit www.iowabankers.com.
About Community Bankers of Iowa
The Community Bankers of Iowa exclusively promotes and defends the common interests of independently owned and locally controlled Iowa community banks whose services are vital to the preservation of economic diversity and rural America. More than 270 independent community banks are located in Iowa, employing over 14,000 Iowans. For more information, visit www.cbiaonline.org.
About Iowa Credit Union League
The Iowa Credit Union League is the trade association that represents the interests of Iowa credit unions and their 1.3 million members. Credit unions are not-for-profit, financial cooperatives owned and operated by their members. Iowa credit unions employ more than 3,500 Iowans and provide a $1.57 billion economic impact to the state's economy. For more information, visit www.IowaCreditUnions.com.
SHAZAM is the nation’s only member-owned debit network, processor and core provider. Founded in 1976 in Iowa, SHAZAM is a primary and single-source provider of the following services: debit card processing, core, fraud, ATM, merchant, marketing, training, risk and ACH for Iowa financial institutions. In addition, SHAZAM now offers credit card issuing to supplement its powerful suite of debit services. Learn more at shazam.net.