In 2008, the financial industry was hit by a major crisis highlighting the importance of sound decision-making and effective management. At the time, I was a licensed series 7 and 63 broker working in the financial securities industry while attending seminary. This experience showed me firsthand the importance of taking a long-term view and avoiding emotional attachment and personal opinions that can cloud our judgment.
Fast forward to this week, and we see Silicon Valley Bank’s and Signature Bank’s failures. At the same time, the First Republic and Credit Suisse Banks are being rescued, and still, others are on edge, which serves as a stark reminder that the health of our financial systems is closely interconnected.
As we reflect on these events, it is essential to remember the wisdom of Proverbs 27:23-24, which cautions us to be mindful of our resources and prioritize responsible stewardship. Whether we are managing our personal finances, the finances of a business or institution, or the finances of a church, it is essential to remain focused on long-term goals and avoid being swayed by short-term emotions.
In particular, managing church finances requires high accountability and transparency, as we are entrusted with the resources others have given over the years and continue to allocate toward the future. It is our responsibility to use these resources wisely and in accordance with the values and priorities of the church that will further the kingdom.
The recent bank failures also demonstrate the interconnected nature of our financial systems. As banks and financial institutions work together to manage risks and allocate resources, the failure of one institution can have ripple effects throughout the system. This is why effective regulation and oversight are essential to ensure our financial systems’ stability and resilience.
As we move forward, let us remember the past and present lessons and strive to be responsible stewards of all our personal, institutional, or pooled resources. Doing so can build a more robust and stable financial system that benefits us all in the short term and future generations.
I look forward to seeing you Sunday morning!
Grace and peace,