ICD: Clients Concerned About Banks
ICD published the release, "ICD 2024 Client Survey Shows Companies Grappling with Counterparty Concentration," which tells us, "A year out from the spectacular failure of Silicon Valley Bank, turmoil in the banking sector still plagues corporations in the Americas and EMEA, according to a newly released survey of 157 treasury professionals responding to the annual client survey of ICD, an institutional investment technology provider. According to the 2024 ICD Client Survey, which closed in February, 80% of respondents say they are highly or moderately concerned with bank failures, while 74% say they are concerned with counterparty concentration risk. Of the 61% who say they have changed the way they have managed counterparty risk since March 2023: 37% - Changed the way or frequency of monitoring risk; 21% - Updated investment policy restrictions; 18% - Changed their investment strategy; 17% - Added or removed investment products to their available mix." ICD CEO Tory Hazard comments, "The banking turmoil of last March has had a lasting effect on corporates, who remain concerned about the banking sector." The release continues, "According to ICD's client survey, only 30% of respondents in the Americas say they are investing in or planning on investing in Demand/Bank Deposits, down from 49% in 2023, while 90% of all respondents say they are increasing or maintaining investments in money market funds." Hazard states, "We've worked with our clients over the past year to introduce an automated solution to the arduous, manual process of collecting, aggregating and monitoring positions from bank deposits, direct investments and underlying holdings from fund and separately managed accounts. Our cloud solution for portfolio analytics leverages AI to create a single data set of our clients' entire investment portfolio so they can effectively manage counterparty risk <b:>`_."
