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
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