MS IC BENEF I TS
deposit insurance to 71 member institutions and serves 1.7 million consumers. The Cooperative holds approximately $32.01 billion in total assets. It is the fifth largest credit union cooperative in the world. MSIC’s coverage ratio of 2.40% remains the highest in the nation among all deposit insurers. Our member credit unions are healthy, well-capitalized, and well-managed. Even in this volatile market economy, after the COVID-19 Pandemic, MSIC’s deposit insurance risk remains low. The Filene Research Institute found that 80% of a credit union’s profits are derived from the top 20% of its depositors. In other words, relationships with excess deposit holders are the most profitable relationships for credit unions. The profits derived from these relationships help fund our important work on behalf of all consumer members. Providing your consumer members with full deposit insurance – the best coverage in the world – tells them that their interests come first. Full deposit insurance is also a vital tool as you seek new relationships, including in your member business lending efforts. When competing with large commercial banks that do not offer this deposit protection, the MSIC membership is a real competitive advantage. When competing primarily with Massachusetts Savings and Co-operative Banks, it is a competitive necessity, as many of these institutions also offer consumers full deposit protection. Also, the recent bank crisis involving Silicon Valley Bank in March 2023 highlighted the importance of MSIC’s full deposit insurance program for your consumers. Consumer fear is immediately mitigated when your members learn about MSIC’s full deposit insurance program. Today, the MSIC Cooperative provides approximately $2.5 billion in excess
In short, membership in the MSIC cooperative community is a real and substantial business asset. Many of the most successful credit unions in our membership use MSIC’s full deposit insurance system as part of their diversified liquidity strategy. Institutions benefit from MSIC membership through our strategic assistance, consulting services, educational trainings, and the cooperation of a diverse community which is actively interested in their success. It is important to note that MSIC is not a vendor; you cannot “buy” MSIC deposit insurance. To offer the best deposit insurance protection in the world to your members, you must become a member of the MSIC community. Also, MSIC membership is both a competitive advantage and a mark of distinction because only healthy, well-managed institutions qualify.
In MSIC’s 63-year history, no consumer doing business with a MSIC member credit union has lost any of their hard-earned savings, or been denied access to their funds. This is a record we can all be proud of. - Mike Hanson, MSIC President & Chief Executive Officer
6 INTERNATIONAL COLLABORATION
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