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    Treasury Management

    Uploaded by

    harrykey John
    The document discusses treasury management. It defines treasury management as collecting funds and disbursing money while managing funds and capital. The responsibilities fall under the CFO. The treasury department is integrated and has operations for domestic treasury and foreign exchange. The objectives are meeting reserve requirements, adequate liquidity, global cash management, and optimizing profit. The structure includes front, mid, and back offices. Functions of treasury management are reserve management, cash management, liquidity management, risk management, and asset liability management. Treasury management services can improve receivables, disbursements, information controls, liquidity, and reduce fraud risks.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Treasury Management

    Uploaded by

    harrykey John
    1K views15 pages
    The document discusses treasury management. It defines treasury management as collecting funds and disbursing money while managing funds and capital. The responsibilities fall under the CFO. The treasury department is integrated and has operations for domestic treasury and foreign exchange. The objectives are meeting reserve requirements, adequate liquidity, global cash management, and optimizing profit. The structure includes front, mid, and back offices. Functions of treasury management are reserve management, cash management, liquidity management, risk management, and asset liability management. Treasury management services can improve receivables, disbursements, information controls, liquidity, and reduce fraud risks.

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    Treasury Management Ppt

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    The document discusses treasury management. It defines treasury management as collecting funds and disbursing money while managing funds and capital. The responsibilities fall under the CFO. The treasury department is integrated and has operations for domestic treasury and foreign exchange. The objectives are meeting reserve requirements, adequate liquidity, global cash management, and optimizing profit. The structure includes front, mid, and back offices. Functions of treasury management are reserve management, cash management, liquidity management, risk management, and asset liability management. Treasury management services can improve receivables, disbursements, information controls, liquidity, and reduce fraud risks.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    1K views15 pages

    Treasury Management

    Uploaded by

    harrykey John
    The document discusses treasury management. It defines treasury management as collecting funds and disbursing money while managing funds and capital. The responsibilities fall under the CFO. The treasury department is integrated and has operations for domestic treasury and foreign exchange. The objectives are meeting reserve requirements, adequate liquidity, global cash management, and optimizing profit. The structure includes front, mid, and back offices. Functions of treasury management are reserve management, cash management, liquidity management, risk management, and asset liability management. Treasury management services can improve receivables, disbursements, information controls, liquidity, and reduce fraud risks.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 15

    What is Treasury Management

     Collects funds and disburses money.


     Managing Funds
     Responsibilities fall under the scope of CFO
     The CFO’s responsibilities include capital
    management, risk management, strategic planning,
    investor relations and financial reporting.
    Integrated Treasury Department

    Domestic • Make investment in their own


    account
    Treasury • SLR, CRR, CP, CD, TB, Bonds &
    Operations Debentures, Equities and various
    other derivaties

    • Conduct operation on behalf of


    clients
    Forex Treasury • Spot and forward markets, foreign
    Operations exchange swap markets , FCNR
    and Nostro Account.
    Integrated Treasury
     Objectives

    a) Meeting reserve requirements


    b) Provision for adequate and timely liquidity
    c) Global cash management
    d) Optimizing profit by exploiting market opportunities in forex
    market, money market and securities market
    a) Risk management
    Structure of Treasury Department
    Function Responsible for

    Front office Dealing

    Mid-Office Risk management, accounting


    and management information

    Back office Confirmations, settlement and


    reconciliation
    Dealing

    FRONT
    OFFICE

    MID BACK
    OFFICE OFFICEsettlement
    MIS
    Bank treasury departments
     Money market desk

     Foreign exchange or FX desk

     Equities Desk

     Derivatives Desk
    Functions of Treasury Management
     Reserve Management & Investment
     Cash Management
     Liquidity & Funds Management
     Risk Management
     Asset liability management
     Transfer Pricing
     Derivative products
     Arbitrage
    Reserve Management & Investment
     Meeting CRR/SLR obligations
    a) CRR – 6%
    b) SLR – 25%
     Appropriate mix of investment portfolio

    Cash Management
     Control & care of the cash assets and liabilities of the
    organization.
     Selection of investment products, investment brokers,
    methods of borrowing, cash management information
    systems.
    Liquidity & Funds Management
     Analysis of cash flow arising out of asset liability
    transaction
     Fund various asset of balance sheet
     Policy inputs to strategic planning and yield expected in
    credit and investment.

    Risk Management
     Changes in Interest rates
     Increasing NPA’s
     Increasing level of disintermediation
    Transfer Pricing
     Transfer of funds to related party.
     Assist in enhancing profits
     Performance evaluation

    Derivative Products
     Develop Interest Rate Swap and other cross currency
    derivative products
     Hedge bank’s own exposure and also sell to customers

    Arbitrage
     Risk less profits
    What is Asset Liability Management
     An attempt to match : Assets & liabilities

     In Terms of : Maturities & interest rate sensitivities

     To Minimize: Interest rate risk & Liquidity Risk


    Asset Liability
    Management

    Liability
    Asset Management
    Management

    How easily banks


    How Liquid are
    can generate loans
    assets of banks
    from market
    ALM
     ALM is an integral part of the financial management process
    of a bank.
     ALM is concerned with strategic balance sheet management
    involving risks caused by changes in interest rate, exchange
    rates and liquidity position of the bank.
     ALM can be termed as risk management technique designed
    to earn an adequate return while maintaining a comfortable
    surplus of assets beyond liabilities.
    Treasury Management Services
     Improve your receivable collection processes
     Increase control and management of your disbursements
     Enhance your level of timely and comprehensive
    information controls
     Maximize your liquidity management
     Reduce the potential for fraud and possible monetary losses
    to your company
     Provide the most advanced information technology tools
    available
    Thank You

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