Cash balances — is it time to increase the guarantees?

Depositors and investors look to cash as a safe harbour

clock • 4 min read

There are many lessons to be learnt from the recent banking crisis, writes Douglas Kearney. Here he shares his thoughts on the aftermath of the recent situation

It was Friday, 9 March this year that a bank few had ever heard of hit the headlines. It was the 16th largest bank in the US. Silicon Valley Bank (SVB) was under immense pressure. It was dubbed the world's first Twitter fuelled bank run. It has been reported that around $42bn was withdrawn in a few hours on that Friday. Although it could be argued that SVB was a very different type of bank with a concentrated depositor base and allegedly some issues with risk management and interest rate movements, it nevertheless failed. SVB was quickly followed by other US regional banks namely Sign...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Government publishes Pensions Investment Review interim report and launches DC and LGPS consultations

Government publishes Pensions Investment Review interim report and launches DC and LGPS consultations

Report published as Reeves delivered inaugural Mansion House speech

Jonathan Stapleton
clock 15 November 2024 • 4 min read
Chancellor to create DC 'megafunds' in Mansion House growth bid

Chancellor to create DC 'megafunds' in Mansion House growth bid

Chancellor to unveil ‘biggest pension reforms in decades’

Martin Richmond
clock 14 November 2024 • 3 min read
Pensions dashboards could leave savers at risk of 'poorly informed' transfers

Pensions dashboards could leave savers at risk of 'poorly informed' transfers

Research finds two-fifths of savers likely to use dashboards to carry out a pension transfer

Martin Richmond
clock 13 November 2024 • 3 min read