Economists say local bank customers should not fear a bank failure happening in Hawaii
By Chloe Marklay
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HONOLULU (KITV) — As panic spread following the Silicon Valley Bank failure, Bank of Hawaii decided to halt trading at different points on Monday with its stock dropping 36% at one point.
Trading has now resumed for Bank of Hawaii. Stock is now at $51.8 cents. Principle for TZ Economics, Paul Brewbaker, encourages Hawaii bank customers to not fear bank failure happening here.
“It’s unlikely to be replicated in Hawaii,” shares Brewbaker. He says you can feel confident your deposits are protected.
“Nothing of this sort needs to be of concern to Hawaiian consumers neither is there a financial systemic risk.”
This is because Hawaiian banks don’t have a certain concentration like silicon valley bank did.
“They’ve been playing in risky markets whether its high tech start ups or cryptocurrency and in all case management failures” says Bonham.
The bank has not had a risk manager since last year. Researching your bank can make all the difference.
Brewbaker says you should be looking out for these 4 things: “I look for good people, good training, lots of experience, and a proven experience when you combine that with deposit insurance.”
That insurance comes from the federal deposit insurance company. It will insure up to 250,000 dollars of your deposits. He says this insurance should relive you of any worries.
“100% insured and there’s just really not any risk. That insurance is there for over a reason and they should sleep well at night because of it.”
Bank of Hawaii said to KITV4, the bank remains strong and stable for its customers despite the dip in its stock on Monday.
Hawaii Bankers Association reassured bank customers they will be protected. It says, “Member banks have strong capital. Customers can bank with confidence knowing that their accounts are safe.”
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