Are we facing another parts shortage? Fort Wayne banks step in

FORT WAYNE, Indiana (WANE) – Buyers may have struggled to get change in recent weeks, prompting some to wonder, “Are we seeing another coin shortage?” “

The short answer? It is complicated.

Consumers will likely remember the nationwide coin shortage due to COVID-19. The supply chain and coin circulation patterns have been disrupted due to the disruption of businesses and banks by the pandemic, as well as a temporary cap issued by the Federal Reserve.

According to the Federal Reserve’s website, there is an “adequate” amount of coins in circulation in the economy. However, the agency admits that coin circulation patterns have not returned to pre-pandemic levels. As a result, new ceilings were reinstated last May. The Federal Reserve is hoping these supply issues won’t last long as the economy continues to rebound from the pandemic.

As the economy recovers and businesses reopen, more coins will flow back into retail and banking channels and eventually flow into the Federal Reserve, which should allow for the replenishment of available coin stocks. for recirculation.

Federal Reserve website

WANE 15 has contacted various local banks to see if they are experiencing parts shortages. Mike Wallace, president of retail banking at STAR Financial, admitted that there have been recent disruptions in the amount of coins being dispensed. He believes this is due to changing consumer habits.

“The problem is, we still have a lack of distribution in traditional buying channels – so customers go out (and) use physical coins, using physical money for those transactions,” Wallace said. “A lot of things have gone digital, and it’s caused disruption with just the overall distribution of coins throughout the monetary system.”

However, not all local banks experience a shortage of coins. A representative from Fort Financial Credit Union said they had not experienced a shortage. Another Flagstar Bank representative declined an interview, but made a statement about it:

“Although the Federal Reserve has placed new restrictions on ordering parts, Flagstar has been able to meet all customer requests. We continue to welcome customers’ rolled parts and will accept any number of rolls at no charge. “

Spokesperson, Flagstar Bank

Wallace added that STAR Financial has been able to meet customer requests to provide physical money, including coins. To meet this demand, STAR Financial and other banks are offering incentives to customers who have a significant amount of coins. Over the next 60 days, STAR Financial customers will be rewarded with a reusable shopping bag if they bring in more than $ 50 in coins at a retail branch.

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