NEW YORK, March 17, 2023 /PRNewswire/ — Wolters Kluwer Legal & Regulatory U.S. today announced a particularly pertinent new resource for corporate legal departments, which comprehensively outlines what to look for and what to ask about when conducting one’s due diligence when working with a bank. Available on VitalLaw® and VitalLaw® for Corporate Counsel, the Due Diligence Checklist identifies proactive steps to gauge if a bank is sound and whether it is stable enough to merit one’s initial business or continued business.
The recent wave of bank failures in the United States has put a heightened and valid focus on the security and stability of financial institutions. Even with protections in place, a bank’s failure is disruptive to individual and corporate customers, including corporate counsel, causing delays and confusion regarding access to funds. Due diligence requires the assessment of a bank by a customer, and of a customer by a bank, in advance of becoming a customer and continuously after becoming a customer.
“Given the circumstances that gave rise to the failure of Silicon Valley Bank and Signature Bank, it has become increasingly necessary for corporate and legal counsels to fully investigate a bank’s interest rate and liquidity risks before committing funds to that bank,” said John Pachkowski, Senior Legal Analyst at Wolters Kluwer Legal & Regulatory U.S.
Wolters Kluwer’s Due Diligence Checklist covers the following areas on how to review all aspects of a bank effectively:
- Assess the overall health of your bank
- Review your bank’s investments
- Ensure your bank participates in stress tests
- Protect your deposits beyond Federal Deposit Insurance Corporation (FDIC) depositor protection
- Regularly monitor your bank for material changes
VitalLaw® is Wolters Kluwer’s intuitive research platform that provides corporate counsel and legal professionals with comprehensive support and world-class analysis in key practice areas. With more than 25,000 pieces of useful content and data visualization tools, VitalLaw® provides customers with faster answers and deeper insights. As the legal space continues to develop daily, the solution also gives customers access to consistent and current updates for laws and regulations.
To learn more about the Due Diligence Checklist, visit: https://business.cch.com/BFLD/WK-DueDiligenceChecklist-ProactiveStepsforAvoidingaBankFailure.pdf
