Webinar: The Banking Crisis: An Overview for Manufacturers

Date April 26, 2023
Authors HBK Manufacturing Solutions

Highlights from the April 26, 2023, HBK Manufacturing Solutions webinar featuring Brian Sommers, Principal, Chief Investment Officer of HBKS Wealth Advisors; and hosted by James Dascenzo, CPA, Principal, National Director of HBK Manufacturing Solutions, and Amy Reynallt, MBA, CMA, HBK Senior Manager, Regional Director of HBK Manufacturing Solutions.

Banking Crisis Background

In March 2023, the Federal Deposit Insurance Company (FDIC) took control of three banks – Silicon Valley Bank (SVB), Signature Bank, and Silvergate Bank. Around the same time, Credit Suisse, the second largest bank in Switzerland, also failed and was purchased by a competitor. The failures were all exposed by similar issues, including narrowly focused customer markets or exposure to cryptocurrency. However, one common factor is critical in each situation – each bank was mismanaging its balance sheet. Therefore, it is unlikely that we will see a large number of additional banks fail.

However, we may see broader consequences of these recent failures. For instance, the banking industry is tightening lending standards and maintaining higher levels of liquidity. This may lower loan volumes which could make it more challenging to borrow. Note: Since the airing of this webinar, First Republic bank was also shut down and subsequently purchased by JPMorgan Chase.

Manufacturers Action Items

Manufacturers may consider:

  • Evaluating their FDIC insured deposits versus uninsured deposits.
  • Working with investment managers, such as HBKS, to balance your risk tolerance versus desired return.
  • Ensuring adequate liquidity to support ongoing operations, and taking actions to improve liquidity such as paying down expensive debt, monitoring return on assets, and ensuring pricing is appropriate.
  • Assessing your lender and financial advisor relationships to ensure both relationships are supporting your business goals.
  • Watch Now!

    For more information on this topic, contact us as follows:

    Brian Sommers, Principal, Chief Investment Officer – HBKS Wealth Advisors – bsommers@hbkswealth.com

    Jim Dascenzo, Principal, National Director – HBK Manufacturing Solutions – jdascenzo@hbkcpa.com

    Amy Reynallt, Senior Manager, Regional Director – HBK Manufacturing Solutions – areynallt@hbkcpa.com

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