Cash is not king: unwelcome depositors seek new homes
Cash may have been king a few years ago, but it has fallen on hard times. Facing a raft of new regulatory costs, banks are turning customers away – seven out of 11 depositors that spoke to Risk for this article said their bank has become reluctant to do the business. The alternatives are not always attractive.
In mid-2014, a treasurer at a UK insurance company found himself in an unexpectedly tense conversation with one of the firm's banks, after trying to deposit the proceeds of a share sale – a total of several hundred million pounds.
"The relationship director said, ‘What are you doing? What is this money? Take it out! We don't want it. It's going to cause issues for our half-year reporting," says the firm's head of treasury. "My initial reaction was ‘What are you talking about? You're a bank! This
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Risk management
Strengthening technology resilience and risk controls against multidomain disruption
Financial institutions are not shielded from multidomain disruption – a greater risk and reality today than before. In a Risk.net panel session, convened at Risk Live North America in collaboration with ServiceNow, experts delved into the consequences of…
Op risk data: Mastercard schooled in £200m class action
Also: Mitsubishi copper crunch, TD tops 2024 op risk loss table. Data by ORX News
Diversification of LDI liquidity buffers sparks debate
Funds using credit assets to top up collateral waterfall, but some risk managers are sceptical
Transforming stress-testing with AI
Firms can update their stress-testing capability by harnessing automated scenario generation, says fintech advocate
Basel stops short on wrong-way risk
New guidelines a step in right direction, but experts warn they won’t prevent another Archegos
On resilience risk, banks prepare to let the bad times roll
Lenders bolster first-line teams and upskill boards as compliance with new rules bites
Complex EU active account reporting could drive trades out of UK
Draft Emir rules might not force large volumes to move to EU, but will make compliance difficult
Strategies for navigating market volatility in the post-US election landscape
This article examines the key themes of a recent webinar, sponsored by S&P Global Market Intelligence, on market volatility following the US election, including inflation risks, commodities, geopolitical uncertainty, ESG considerations and the role of…
