INTERBANK CONTINGENT FUNDING LIQUIDITY EXCHANGE
(This is not not a deposit placement service)
The most pressing issue for banks today is liquidity management. Today's uncertain economic times have financial instituions and their regulators seeking out more funding sources.
Having access to reliable sources of liquidity are at a premium.
As risk managers know, obtaining or retaining funding sources can be a daunting challenge for most institutions. Over the past few months, we have witnessed a chain of events related to liquidity, that have shaken the banking industry and have demonstrated the danger of funding shocks.
A greater than anticipated percentage of total deposits within an extremely short period of time can be at risk of leaving the bank- particularly uninsured deposits. This situation can be compounded by the periodic review of secured and unsecured lines of credit, advances, and repurchase agreements, which may be substantially changed or even canceled, making these arrangements unreliable, expensive, and a suboptimal use of financial resources. Therefore, it is crucial for financial institutions to have a credible contingency funding plan (CFP) in place to maintain liquidity. Regulators, as well as your stake holders, look favorably on banks that are adding multiple sources of contingency funding.
With Interbank Liquidity Exchange™, we offer an extremely inexpensive tool that can provide funding during times of need. Our network provides a very reliable and diversified source of funding that you can count on in the event of a liquidity issue. Our team has worked with the FDIC for decades providing solutions for bank treasury departments and this is the latest addition to our product line.
The product was designed with the assistance of our long-term counsel, Carlos Loumiet, Partner at Nelson Mullins
Dive into enhanced liquidity with Interbank Contingent Liquidity Funding Exchange LLC. We're here to strengthen your Contingency Funding pool by facilitating a reciprocal exchange of Irrevocable Stand-by Letters of credit with top-notch FDIC insured depository institutions. These letters of credit are backed by a one-year time deposit, drawn only in the event of a certified liquidity event, approved by both your CEO and CFO.
Ready to take your liquidity game to the next level? Get in touch with our team for all the details.