Banking Woes Send Consumers Looking for Safer Alternatives

Nuray Ozbay, investment officer for Self Help Federal Credit Union in California, said Community Development Financial Institutions and Minority Depository Institutions, known as CDFIs and MDIs, are comparatively well-capitalized and with high levels of liquidity.

“Community banks, CDFIs, and MDIs are usually financially conservative,” Ozbay explained. “They put their members first, and they are usually risk-averse. So, they are safe places to invest.” helps people invest their money according to their values, said smaller credit unions are more accountable to their members because the members are also the banks’ leading investors.

Silicon Valley Bank focused heavily on startups, while Signature Bank invested a lot of money in cryptocurrency. Ozbay noted that local banks are much less likely to rely on higher-risk investments.

“They’re more likely to take profits from the year and invest it in member services,” Quirk-Garvan pointed out. “Whether hiring more tellers or investing by making loans in a local community bakery, they’re making different decisions regarding their values.”

The Federal Deposit Insurance Corporation, the FDIC, keeps the banking system stable by insuring all deposits up to $250,000, no matter the size of your bank.

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result, some experts are pointing to a more significant role for community banks.

Brady Quirk-Garvan, coowner and financial adviser for Natural Investments, which

Disclosure: Self-Help Credit Union contributes to our fund for reporting on Consumer Issues, Environment, Health Issues, and Social Justice.