Business Strategy and Outlook
| Michael Wong |We assess that Charles Schwab has enough access to cash and capital that it can weather the storm in the financial sector that was unleashed after the collapse of Silicon Valley Bank. While Charles Schwab is best known for its retail investor and registered investment advisor platforms, Charles Schwab Corporation is a savings and loan holding company that had over $300 billion of deposits at the end of 2022. The company has access to the Federal Reserve’s Bank Term Funding Program that can provide the firm upwards of $200 billion of cash to deal with any potential deposit withdrawals from clients. It also had about $40 billion of cash on its balance sheet at the end of 2022, over $50 million of cash inflows projected in 2023 according to our calculations, and other sources of liquidity, such as commercial paper and inflows from certificates of deposits.