Banking · Executive guide · 4 min read
Is your corporate cash resilient in a crisis?
Cash held with large banks and money market funds is not automatically safe or accessible under stress. Resilience depends on concentration, how quickly funds can be moved and how clearly you can see where cash sits.
- Who this is for
- CFOs, treasurers and board risk committees.
- Why it matters
- Risk is not only whether a counterparty fails. Withdrawal limits, trapped local cash and operational freezes can restrict access even when institutions remain solvent.
Executive summary
- 1Test counterparty concentration, not just credit ratings.
- 2Test access to funds, not only solvency.
- 3Insist on clear visibility of where cash sits and what it costs.
What are the three tests?
Test 1: Concentration under stress
- How much depends on one bank?
- One clearing system?
- One jurisdiction?
- One fund manager?
Test 2: Access, not just solvency
- How quickly can we move funds?
- What is our exposure to settlement cycles?
- Could cash be trapped in local entities?
Test 3: Transparency
- Do we see all costs and fees?
- Do we have regular exposure reporting across instruments?
- Do we know where our cash truly sits, including indirect exposures through funds?
What does a resilient design look like?
Common themes include diversification across counterparties and instruments, appropriate maturities, better data across accounts and regular review rather than an annual exercise. Which apply depends on your circumstances.
Sources and methodology
- Bankhawk perspective. Regulatory and legal points require expert review.
Review how your cash is held
Tell us how many banks, entities and instruments you use. We will outline what a review would examine.
Discuss your banking arrangements