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Bank Deposits Key Element of Liquidity Strategy for Corporate Treasurers in 2023, MUFG Says

NEW YORK, NY, (January 4, 2023) – In the current economic environment and into 2023, bank deposits will be an important component of a liquidity strategy for Corporate Treasurers. Amid dynamic markets, CFOs and Corporate Treasurers are utilizing a mix of products across different cash categories to create an optimized investment strategy while providing adequate liquidity and returns.

In 2023, key drivers such as globalization, rising interest rates, supply chain pressures, and geo-political and market situations will impact decision-making in terms of cash product segmentation and investments.

Key principles in priority setting

Corporate Treasurers are setting liquidity objectives that address evolving markets and that align with business priorities as well as environmental, social, and governance (ESG) goals.

“We are seeing three key principles guide Corporate Treasurers in their strategy and priority setting for 2023 — security, liquidity, and yield,” said Ray Fattell, Head of Transaction Banking Americas at MUFG. “Corporate Treasurers are using these three principles to align their portfolio returns with market views, cash flow forecast scenarios, and business risk appetite.”

Cash segmentation strategy

Corporate Treasurers are pursuing a cash segmentation strategy that meets the economic environment by shaping the mix of short, medium, and long-term cash deposits. These include:

  • Operational Cash: To manage working capital and day-to-day company liquidity requirements as well as invest surplus liquidity in sustainable projects that support ESG commitments.
  • Core Cash: To manage more significant items such as capital purchases, tax payments, and dividends.
  • Strategic Cash: To support future business strategy.

CFOs and Corporate Treasurers are continuously reviewing their priorities when it comes to investing surplus cash and are proactively engaging with deposits as part of their strategy,” said Ray Fattell. “In 2023, we expect that our corporate clients will continue to re-balance their cash segmentation to maximize returns against liquidity expectations as the economic climate changes.”

About MUFG and MUFG Americas

Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financial groups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with approximately 2,100 locations in more than 50 countries. MUFG has nearly 160,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to “be the world’s most trusted financial group” through close collaboration among our operating companies and flexibly respond to all the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG’s shares trade on the Tokyo, Nagoya, and New York stock exchanges.

MUFG’s Americas operations, including its offices in the U.S., Latin America, and Canada, are primarily organized under MUFG Bank, Ltd. and subsidiaries, and are focused on Global Corporate and Investment Banking, Japanese Corporate Banking, and Global Markets. MUFG is one of the largest foreign banking organizations in the Americas. For locations, banking capabilities and services, career opportunities, and more, visit