AS WE CELEBRATE MSIC’S 63RD YEAR WE CAN ALL BE PROUD OF THE HISTORY OF STABILITY AND PROTECTION OUR COOPERATIVE AFFORDS TO CONSUMERS AT OUR MEMBER CREDIT UNIONS.
order to manage its long-term concentration risk and ensure the long-term viability of the full deposit insurance system. We will continue in these efforts, and call upon the Division of Banks to become educated about this basic insurance need, and to support MSIC’s efforts.
Now, as we move beyond COVID-19, MSIC is resuming its mission to enhance and advocate for increasing levels of collaboration. In the coming years we will resume sponsorship of activities to bring our CEOs and their teams together to advance the collaboration agenda. But you have to meet us half way! Join us and help devise structures and business plans to advance the collective success of our Cooperative. We look forward to resuming this important work with each of you.
The March 2023 banking crisis also exposed the extent to which the business of banking, technological advances and changing consumer behaviors have created
We are also pleased to report that during the year LUSO Federal Credit Union successfully joined our Cooperative and we welcome them to our community of credit unions. As we celebrate MSIC’s 63rd year we can all be proud of the history of stability and protection our Cooperative affords to consumers at our member credit unions. This year we saw the dramatic positive effects on consumers when they were reminded that they are insured in full, and that no consumer had ever lost any money or been denied access to their funds at an MSIC member credit union. This system protects those consumers and brings great stability to the entire Massachusetts financial system.
significant additional risk for financial institutions, regulators and deposit insurers. MSIC uses its membership in the International Association of Deposit Insurers (IADI) as its research arm to keep pace with global best practices for deposit insurers. MSIC was the host for the 2023 IADI Conference and Annual General Meeting in Boston during the last week of September. We used that event to push the IADI to address the changing risk of financial institutions’ operations and the effects on deposit insurers. We are pleased that the IADI has now increased its activities to help all deposit insurers better prepare for this new world of bank runs. Our international collaboration as part of the IADI serves the MSIC Cooperative well by helping us be better prepared to manage complex risks in association with other deposit insurers around the world. A final note on MSIC’s collaboration agenda: for many years MSIC has advocated for increased collaboration among our credit union members. The facts are plain: the complexities of new technologies and changes in consumer expectations and behavior will make it very difficult for credit unions to operate successfully on their own. Collaboration is essential to reducing the costs of operations and thereby increasing profitability. Prior to The Pandemic, we were making good progress in the cultural change in our Cooperative necessary to expand collaboration in all our operations. The Pandemic brought these efforts to a halt because we were all forced to concentrate on our individual institutions and face the difficulties of protecting our staff, while also continuing to provide essential financial services to our consumer members during a stressful time.
The MSIC Insurance System is worth fighting for, especially in volatile times like this.
We wish you a successful and profitable 2024.
MICHAEL E. MURPHY Chairman
MICHAEL C. HANSON President & CEO
2023 ANNUAL REPORT 5
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