A window through which banks raise funds or place funds for its

operations

TREASURY
MANAGEMENT
& GLOBAL
SCENARIO

Prasad Jadhav, Roll No. 20

Treasury management
Treasury generally refers to the funds and
revenue at the disposal of the bank and day-
to-day management of the same
It acts as the custodian of cash and other
liquid assets
The art of managing, within the acceptable
level of risk, the consolidated fund of the
bank optimally and profitably is called
treasury mgmt.
Evolving role of treasury
Foreign Exchange Dealing

Money Market Dealing

Investment in Capital Market Securities

Dealing in Commodities Exchange

Functions of Treasury
Reserve Management and Investment
Liquidity and Funds Management
Asset-Liability Management
Risk Management
Transfer Pricing
Derivatives Trading
Arbitrage
Capital Adequacy
Functional Areas of Treasury
Objectives of Treasury
Management
To take advantage of the attractive trading and arbitrage
opportunities in the forex markets

To deploy and invest the deposit liabilities, internal

generation and cash flows from maturing assets for
maximum return

To effectively manage the forex assets and liabilities of the

bank

To act as a profit center for the bank

 Objectives (CONTD)
To fund the balance sheet on current and forward basis
as cheaply as possible taking into account the marginal
impact of these actions

To manage and contain treasury risks of the bank within

the approved and prudential norms of the bank and
regulatory authorities

To assess, advice and manage financial risks associated

with the non-treasury assets and liabilities of bank

To maintain statutory reserves- CRR & SLR

INVESTMENTS
The treasury structure
 Role of Treasury Department
Cash forecasting
Working capital management
Investment management
Cash management
Treasury risk management
Management advice
Credit rating agency relations
Fund raising
Credit granting
Bank relationship
Other activities
Global Treasury Drivers
Process of treasury
management in global scenario
Funds move across the border in search of
best terms
Requires reforming financial markets and
banking sector
Overhaul of regulatory framework
More transparent systems with quick
settlements
Nimble footed funds with quick mobility
GOING GLOBAL- initial focus areas
Measuring Global Treasury
Execution
SET OBJECTIVES:
Clear reporting expectations for global regions
Senior mgmt. buy-in & incentives
Set metrics: e.g, target bank balance, forecast accuracy
MONITOR:
Transparent & proactive reporting
Treasury scorecards, incentives, technology communication
channels
REALIGN:
Proactive restructuring of metrics as business evolves
Conclusion
Global expansion requires a treasury strategy
with greater visibility, control and efficiency
Adopt international best practices and avoid
replicating U.S. cash process
Benchmark with your partners and treasury peers
Leverage treasury technology, partners and
communication channels
Proactive reporting, performance measurement
and scheduled reviews
THANK YOU!!!