Your Bank Can Manage Its Liquidity Using Insured Cash Sweep® and CDARS®
Is managing liquidity a challenge for your bank? How does your bank manage a valuable customer who has a large deposit when your bank is flush with cash?
Flexible Balance Sheet Management Tools
Bringing in large-dollar deposits when your bank doesn’t need them can create challenges, including:
Concentration risk | Reduced capital ratios | Depressed earnings
The ICS, or Insured Cash Sweep, service and the CDARS service provide smart solutions to this challenge. By using ICS® One-Way Sell® or CDARS® One-Way Sell®, your bank can sell excess deposits, effectively taking them off balance sheet, while building valuable customer relationships and earning fee income.
In addition, your bank can bring the full amount of the deposits back on balance sheet when you need them by using ICS® ReciprocalSM or CDARS® ReciprocalSM. In a Reciprocal transaction, your bank receives dollar-for-dollar matching funds for your customer deposits. Many banks “toggle” between One-Way Sell and Reciprocal as needed to manage liquidity.