Solutions for Highly Liquid Banks
Grow market presence without adding deposits to your bank balance sheet
Promontory Interfinancial Network's services can help your bank grow its market presence and earn fee income without adding deposits to its balance sheet. The flexibility provided by these services means your bank can avoid saying “no” to valuable, franchise-building customers and accept large deposits that it may have been afraid to take before due to concentration risk or other balance sheet concerns.
ICS®, or Insured Cash Sweep®, and CDARS® enable banks to offer multi-million-dollar FDIC insurance eligibility through a single bank relationship for funds placed in demand deposit accounts and money market deposit accounts (through ICS) and in CDs (through CDARS). All banks that offer ICS and CDARS are part of the Promontory Network. With ICS® One-Way Sell® and CDARS® One-Way Sell®, your bank can sell excess customer funds (just the excess funds, not the relationships) to other Promontory Network members and earn fee income. If your bank’s liquidity position changes, it can bring funds back on balance sheet—through ICS Reciprocal or CDARS Reciprocal—all without affecting the customer relationship. (A new law provides that most reciprocal deposits are no longer brokered. This presents an enhanced opportunity to use ICS and CDARS Reciprocal to grow nonbrokered deposits when your bank needs to add deposits to its balance sheet again.)
With Promnet Repo, banks can offer large-dollar customers—such as corporations, financial institutions, and government entities—valuable benefits, while moving billions of dollars of unwanted deposits off balance sheet. Customers can enjoy the security of having their funds backed by U.S. Treasuries or by Agency MBS. Banks of all sizes can benefit from the balance sheet flexibility afforded by Promnet Repo and the ability to offer customers a wider array cash management services. Also, banks affected by Liquidity Coverage Ratio calculations can avoid having to retain deposits that are negatively impacted by these calculations under new regulations.
With Yankee Sweep, banks can offer sophisticated customers the potential to place their funds at U.S. branches of select non-U.S. banking organizations, providing these valued customers with an alternative option for their cash balances that may achieve a higher level of return. Although these deposits are uninsured, they are placed with U.S.-chartered branches of foreign banks that are subject to Federal Reserve Board regulation and have international credit ratings. Banks that use Yankee Sweep can sell excess liquidity and earn noninterest income.
Learn more about how Promontory Interfinancial Network's services can give your bank more flexibility to manage its balance sheet in almost any market condition by visiting ICS, CDARS, Yankee Sweep, and Promnet Repo.
Use of the CDARS and ICS services is subject to the terms, conditions, and disclosures set forth in the CDARS-ICS Participating Institution Agreement and applicable Deposit Placement Agreements. Limits apply, and customer eligibility criteria may apply. ICS program withdrawals are limited to six per month when using the ICS savings option.
The Promnet Repo service is provided by Assetpoint Financial, LLC, a wholly owned subsidiary of Promontory Interfinancial Network, LLC and a member of FINRA and SIPC. Use of the Promnet Repo service is subject to the terms, conditions, and disclosures set forth in the Promnet Repo agreements, including the Promnet Repo Service Agreement. Assetpoint Financial, LLC does not purchase or sell any securities in connection with repurchase agreement transactions effected using the Promnet Repo service. Funds invested in repurchase agreement transactions are not FDIC insured.
CDARS, ICS, Insured Cash Sweep, One-Way Sell, and Yankee Sweep are registered service marks of Promontory Interfinancial Network, LLC.