Covid-19 spooks majority of firms to keep cash reserves stocked up
More than 70 per cent of larger businesses are seeking to bolster their cash reserves, as firms look to strengthen their position to tackle any future crises, according to the latest research, which has been shared exclusively with City A.M.
The Covid-19 pandemic has been a wake up call for businesses, after the global health crisis ground many to a halt.
While the recent COP26 climate conference has enlightened many businesses to the vulnerabilities that may emerge as a result of global warming.
Over half of senior business leads have watched cash reserves swell over the past 12 months, research by specialist banking group Investec found.
Meanwhile, more than 80 per cent of companies have dialled back their investments – suggesting companies are sacrificing investments to keep their emergency piggy bank stocked.
Though not all firms have been able to increase their reserves – with nearly 40 per cent of businesses finding the cash stash to dwindle.