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By Rhonda Miller
PBN Staff Writer
WASHINGTON – Corporate cash reserves remain high and growing in banks, while a significant stream of cash is flowing into the types of corporate investment that is a promising sign for American business, according to a 2013 survey by the Association for Financial Professionals that was released June 19. The survey was underwritten by RBS Citizens, according to a press release.
Corporate treasurers and CFOs reported that their companies were more likely to have expanded cash and short-term investment holdings over the past year than to have contracted them, but companies that reduced cash were making clear investments for the future, often taking the opportunity to acquire or launch businesses.
“Though CFOs and treasurers are cautious, these are significant amounts of cash being invested in American businesses,” said AFP President and CEO Jim Kaitz. "If the trend continues to play out as we expect, business investment should continue to rise.”
James Gifas, head of Treasury Solutions at RBS Citizens, concurred. “There are good signs that companies are building and investing now and laying the groundwork for their future,” said head of Treasury Solutions at RBS Citizens James Gifas. “We are seeing confidence levels rise among our treasury customers and the survey results underscore this trend."