Treasury
and finance professionals are paying more attention than ever to the safety and
soundness of their banking partners, according to a new AFP survey.
The 2011
AFP Treasury Benchmarking Survey, underwritten by PNC,
and released at AFP’s 2011 Annual Conference in Boston on Sunday, found that
over 70 percent of corporate treasurers consider a bank’s health to be a
significant factor in initiating or maintaining a business relationship, and 19
percent changed banks last year due to concerns about a bank’s health. Despite the current economic
environment, only half of the 720 respondents indicated that cost is an important
consideration for establishing a bank relationship.
“The instability of the financial system has
caused companies to take a closer look at their banks and solidify
relationships with the ones that can help them accomplish their business goals,”
said Jim Kaitz, AFP’s president and CEO. “They are monitoring banks on their
own, beyond information provided by rating agencies.”
The
third annual AFP Treasury Benchmarking
Surveyevaluates
treasury departments’ operational issues that directly impact
an organization’s success. This is the first time the survey has emphasized
bank relationship management.
View more survey results on www.afponline.org/benchmark.