Cash deposit safety still tops CFO worries, survey finds

Group 1 - The collapse of Silicon Valley Bank in 2023 has led financial leaders to reconsider their banking strategies, focusing on diversifying their banking relationships to mitigate risks associated with potential bank failures [3][5] - A significant portion of companies with balances over $250,000 are diversifying their accounts or considering strategies to maximize FDIC insurance coverage, with mid-sized financial institutions being viewed as offering attractive rates [4][5] - Despite efforts to diversify, 86% of surveyed companies still hold balances exceeding the $250,000 FDIC insurance limit, highlighting a need for better understanding of cash safety and risk management [5][6] Group 2 - Long-term bank deposit safety remains a top concern for finance executives, with 74% ranking it among their top three priorities, surpassing concerns about inflation (70%) and cyber risk (65%) [6] - The survey indicates that many businesses could only operate for less than three months if their primary bank failed, revealing a disconnect between perceived cash safety and actual protection [6] - CFOs are urged to prioritize understanding protection limits and diversifying risk to enhance cash confidence, treating access to deposits as a core business priority [6]