INDIANAPOLIS — You may have heard about bank closures that have been impacting businesses around the nation. Now, many are asking if Hoosiers will be affected by these challenges.
Banks like the Silicon Valley Bank (based in California) and Signature Bank (based in New York) have collapsed in recent days. High inflation and interest rates have contributed to their financial woes.
Source: NurPhoto / Getty
Source: NurPhoto / Getty
Kristoph Kleiner – a professor at IU’s Kelley School of Business – tells WISH TV that it is not clear yet if, or how, Hoosier institutions might be influenced, though some businesses may feel the effects.
However, he notes, “I don’t think it’s a direct concern for them… but at least temporarily…might be a concern for those companies to match their payroll, let’s say this coming week….”
Kleiner says the 2018 Economic Growth, Regulatory Relief, and Consumer Protection Act is partly to blame.
Source: Pgiam / Getty
Former President Trump signed the bipartisan Act, which lightened certain banking regulations that were established in response to the economic problems of 2008.
In regard to this Act, Hoosier Representative André Carson released a statement, which you can find at the end of this article. Learn more about the banking failures here and here.
This being said, Kleiner encourages you to avoid a “run” on banks, which could just lead to bigger problems.
I joined a large bipartisan majority to pass changes in 2018 to provide assistance to smaller financial institutions like credit unions and community banks that many of my constituents urged us to support. It also adjusted the thresholds for periodic ‘stress tests’ to assess the financial health of some larger banks. I believe it’s time to review and update those changes to bring the requirements closer in line to our original Dodd-Frank standards, which I was proud to vote to establish. This will help strengthen our financial system to keep it resilient and reliable as economic tides ebb and flow. – Representative André Carson
Source: Pgiam / Getty
