Survey Reveals Lingering Cash Safety Fears Among CFOs, Despite Post-SVB Reforms
This analysis is based on a report by Ampersand. For continuous coverage of corporate finance, subscribe to our daily newsletter.
The specter of Silicon Valley Bank's dramatic collapse in March 2023 continues to haunt corporate boardrooms. A new survey reveals that for many Chief Financial Officers, the safety of company cash deposits remains a paramount worry, overshadowing even interest rate concerns. The report suggests that while lessons were learned, significant vulnerabilities persist.
The SVB failure was a wake-up call, forcing finance teams into frantic scrambles to meet payroll and keep supply chains moving. In response, many firms pledged to diversify their banking relationships to avoid having all their "eggs in one basket." The survey indicates some have followed through: among companies with balances exceeding $250,000, a notable segment has either diversified accounts or is exploring strategies to maximize FDIC insurance coverage.
Mid-sized and regional banks appear to be beneficiaries of this reassessment, with respondents citing them as often providing more attractive rates and personalized service than national giants. Over half reported receiving superior rates from these institutions.
Yet, the core finding is starkly alarming: a full 86% of surveyed companies hold deposit balances that exceed the standard $250,000 FDIC insurance limit. This leaves a vast pool of corporate capital unprotected in the event of a bank failure. Furthermore, many businesses admit they would struggle to operate for more than three months if suddenly locked out of their primary banking account.
"The data paints a picture of acknowledged risk but incomplete action," the Monday-released report concludes. "There is a critical need for education on FDIC mechanics, diversification tactics, and early warning signs. Building true cash resilience requires moving beyond awareness to concrete strategy."
Expert & Industry Reactions:
Michael Thorne, a treasury consultant at Fortis Advisory: "This isn't just about SVB. It's a fundamental reassessment of counterparty risk. CFOs are realizing that 'too big to fail' is not a risk management strategy. The smart money is now on a deliberate, multi-bank architecture."
David Chen, CFO of a mid-market tech firm: "We split our cash across three institutions the week after SVB. The administrative overhead is higher, but the sleep-at-night factor is priceless. This survey confirms we're not alone in prioritizing safety over minor basis-point gains."
Anya Petrova, financial journalist and commentator: "It's sheer negligence. 86% are over the limit? That's not a 'concern,' that's a ticking time bomb. The regulatory talk after SVB was just noise. Banks are still gambling with uninsured deposits, and CFOs are complicit by chasing yield over security. When the next failure happens, the chorus of 'we never saw it coming' will be deafening."