Skip to main content

Survey: Cash accounts would shift if special FDIC insurance ends

Sageworks
December 11, 2012
Read Time: 0 min

More than half of the financial professionals in a recent survey said they expect to move at least some of their organizations’ cash and short-term investment portfolios from non-interest bearing bank accounts if unlimited FDIC insurance expires at the end of the year, according to the Association for Financial Professionals.

In its 2013 AFP Business Outlook Survey, the group said organizations planning to shift those holdings into other investment vehicles expect to reduce the holdings by a median of 20 percent. But one in five respondents said their organizations would reduce the size of current bank deposits by at least half. The survey was conducted between Nov. 26 and Dec. 7 and generated 1,361 responses. Download a copy of the complete AFP survey here.

On the same topic, the chief economist for the Independent Community Bankers of America urged Congress to extend the program promptly, outlining why an extension is imperative in a column for American Banker Monday. Paul Merski, who is also ICBA’s executive vice president of congressional relations, said an extension would prevent more uncertainty, minimize concentration of deposits at the largest U.S. banks and avoid destabilizing the recovering banking system. Read the entire column here.

About the Author

Sageworks

Raleigh, N.C.-based Sageworks, a leading provider of lending, credit risk, and portfolio risk software that enables banks and credit unions to efficiently grow and improve the borrower experience, was founded in 1998. Using its platform, Sageworks analyzed over 11.5 million loans, aggregated the corresponding loan data, and created the largest

Full Bio

About Abrigo

Abrigo enables U.S. financial institutions to support their communities through technology that fights financial crime, grows loans and deposits, and optimizes risk. Abrigo's platform centralizes the institution's data, creates a digital user experience, ensures compliance, and delivers efficiency for scale and profitable growth.

Make Big Things Happen.

 

Looking for Banker’s Toolbox? You are in the Right Place!

Banker’s Toolbox is now Abrigo, giving you a single source for all your enterprise risk management needs. Use the login button here, or the link in the top navigation, to log in to Banker’s Toolbox Community Online.

Make yourself at home!

Looking for MainStreet Technologies? You are in the Right Place!

MainStreet Technologies is now Abrigo, giving you a single source for all your enterprise risk management needs. Use the contact us button here, or the link in the top navigation, to reach product support for your MST products.

Make yourself at home!

Looking for Sageworks? You are in the Right Place!

Sageworks is now Abrigo, giving you a single source for all your enterprise risk management needs. Use the login button here, or the link in the top navigation, to log in to your Sageworks products.

Make yourself at home!

Looking for Farin? You are in the Right Place!

Farin is now Abrigo, giving you a single source for all your enterprise risk management needs. Use the login button here, or the link in the top navigation, to log in to your Farin client portal.

Make yourself at home!

Abrigo acquires construction loan management solutions

Coupled with our lending suite, Construct and +Pay from BankLabs enable end-to-end automated residential/commercial construction loans.

Read the press announcement

BankLabs Logo Abrigo Logo