DES MOINES, Iowa — Over the weekend, two major commercial banks, Silicon Valley Bank in California, and Signature Bank in New York saw the second-largest bank failure in the United States since 2008. Leaving many to wonder how local banks will be affected.

Thankfully for Iowans, a banking expert shares they have nothing to worry about.

That’s because banks like Silicon Valley and Signature are financial institutions based heavily on tech start-ups supported through venture capitals, and hold relationships with crypto companies.

However, Iowa banks are different.

“Iowa banks are relationship lenders, we collect deposits locally from our community and we loan those deposits back to the communities in the form of housing loans, loans to businesses, loans to farmers, and consumer credit. So, we have a totally different business model than the institutions that are being talked about nationally,” said John Sorensen, President and CEO of the Iowa Bankers Association.

A major issue with Silicon Valley and Signature is that they are highly concentrated banks, meaning they do not have diverse deposit funding, which can lead financial institutions to sell assets at an unfavorable time.

Sorensen states that isn’t the case in Iowa, and if you look at any type of performance measure, Iowa banks are well above the national average.

Although Iowan’s money is safe, Sorensen does note one area of caution: Fraud.

“There are opportunities for people who don’t have your best interest at heart to try and scam you in some way. So be extra careful during these times and make sure you’re safe with your money,” said Sorensen.

Now an issue that some might have faced locally is individuals who sell products on Etsy.com. The site paused seller payouts due to Silicon Valley Bank collapsing. But in an article from techcrunch.com, Etsy started processing those payments on Monday.