BankingRisk Management
August 9, 2023

Scrutinizing Risk: Taking Frequent Looks at Bank Credit Exposure

Downgrades by Moody’s point up the ongoing, post-SVB review of bank risk by investors and corporate treasury. Moody’s this week downgraded 10 regional banks and took other actions that underscore that a banking crisis ignited by the collapse of Silicon Valley Bank five months ago has changed how the world—including corporate risk managers—views the creditworthiness of banks. The failure of SVB and other institutions has triggered a widespread review of credit risk policies and led to changes within many finance organizations. One indicator of…
BankingTreasury Management
July 27, 2023

Gauging Strength and Progress: Treasury Performance Metrics

Regular monitoring and analysis of metrics can help identify areas of strength and weakness, and ensure efficiency. Treasury performance metrics are crucial for corporations as they provide a framework for assessing the efficiency and effectiveness of their treasury operations. They serve as a window into how well the treasury team is functioning in a variety of areas, from cash management to payments to foreign exchange. At a recent meeting of NeuGroup for Mid-Cap Treasurers, one member gave an updated presentation on…
BankingRisk Management
July 13, 2023

Digging Deeper: Finding New Metrics for Counterparty Credit Risk

Treasurers are adding new ways to measure the credit risk posed by their banks, new NeuGroup Peer Research shows. The nearly overnight demise of Silicon Valley Bank jolted many corporate treasurers into taking a hard look at what metrics to include when assessing banks’ creditworthiness. New NeuGroup Peer Research shows many treasury teams are now going beyond the obvious to evaluate their counterparty credit risk. Missing the signs. The urgency of this review and retooling is fueled in part by the realization, in…
July 13, 2023

Own Your Own Key: Cutting Out the Crypto Custody Middleman

Why one member set up cryptocurrency self-custody with Fireblocks instead of using a custodian. When El Salvador officially recognized bitcoin as legal tender in 2021, one NeuGroup member company that does business in the country had to act quickly to figure out how to pay or be paid via bitcoin. “If someone wants to pay in bitcoin, we couldn’t say no,” the member said at a recent meeting of NeuGroup for Digital Assets sponsored by Fireblocks. So the treasury team started a focus group to…
BankingRisk Management
June 28, 2023

SVB Shockwaves: Updating Bank Counterparty Credit Risk Strategy

NeuGroup Research survey results on the repercussions of the SVB collapse for corporates managing risk. The immediate flurry of activity by corporates in the aftermath of Silicon Valley Bank’s first-quarter collapse has subsided. But as the second quarter draws to a close, new NeuGroup Research shows the crisis of confidence ignited by SVB will have long-lasting implications. Preliminary results of the Best Practices in Assessing Bank Counterparty Risk Survey reveal the crisis has triggered a reassessment of bank counterparty credit…
June 28, 2023

A Mutiny Fizzles, the Challenges Endure for Corporates in Russia

Companies face pressure to reduce bank balances at Raiffeisen Bank, higher bank processing fees and new sanctions. The dramatic showdown that unfolded in Russia over the weekend threatened to further complicate the challenges facing multinationals still operating in the war-torn region amid sanctions and countersanctions. Some are members of the NeuGroup for Russia-Ukraine Crisis working group, including companies that transport food commodities and medical supplies. One member trying to get ahead of the potential fallout from the apparent mutiny requested a session…
BankingCapital MarketsTechnology
June 22, 2023

Best of NeuGroup Insights, First Half of 2023

Technology, the banking crisis and uncertainty about interest rates created challenges and opportunities for treasury, FP&A and other finance teams, reflected in these top-10 posts, which include a podcast and a video. Telling topics. The 10 most popular posts from NeuGroup Insights from the first half of 2023 provide a clear window into how finance teams throughout the Office of the CFO—such as treasury and FP&A—have stepped up this year and managed new, complex risks posed by the banking crisis…
June 14, 2023

Finding a Post-M&A Legacy Bank Account Benefit in SVB’s Failure

A multi-beneficiary account opened amid SVB’s demise may help ease future M&A legacy bank account pain. Silicon Valley Bank’s failure in March set off a mad scramble at corporates with funds at the bank, including one NeuGroup member company that found itself exposed to risk from legacy SVB accounts inherited through M&A deals. A solution the company adopted, suggested by one of its main banks, may offer some relief to the pain caused by legacy accounts that many treasury teams…
June 8, 2023

SVB, Stress Tests and Stigma: Bank Treasurers on Lessons Learned

Liquidity, collateral, the Fed’s discount window and regulators spark talk following the collapse of Silicon Valley Bank. The banking crisis of confidence sparked by the collapse of Silicon Valley Bank (SVB) in March has pushed many members of NeuGroup for Regional Bank Treasurers to revisit, review and—in some cases—rethink aspects of liquidity stress testing and contingency funding plans. Among the most discussed topics: where collateral is pledged, communication with regulators and the stigma of using Federal Reserve borrowing programs like the discount…
BankingCash & Working Capital
June 8, 2023

FedNow’s July Debut: New Focus On Instant Payment Use Cases

What corporates are saying about the Fed’s instant payment system and what it may mean for them.Blockchain proponents may be promising a bright future of limitless payments made in seconds, but traditional payments infrastructures are providing real-time alternatives today. Next month, the US Federal Reserve will launch FedNow, a payments system that enables USD payments of up to $500,000. The service will join the RTP network, a real-time payment platform owned by The Clearing House and launched in 2017, as an instant payments option.…