Results for ‘funds’

Preventing a next bank failure like Credit Suisse: More capital is not the solution

After the collapse of Credit Suisse and the subsequent orchestrated take-over by UBS, there are widespread calls for increasing capital requirements for too big too fail banks to prevent future defaults of such institutions. However, more capital will not prevent the failure of a bank in a bank-run like Credit…

Demystifying blockchain security risks

To fully leverage the benefits of this technology, it’s essential to understand and address security threats when implementing blockchain solutions. As a decentralized distributed ledger technology, blockchain can add value as a platform that integrates a corporate’s operational processes with its treasury processes. This could drive treasury efficiencies and reduce…

Global disruptions demand Treasuries to act fast

 In today’s world, supply chain disruptions are consequences of operating in an integrated and highly specialized global economy. Along with affecting the credit risk of impacted suppliers, these disruptions are demanding Treasuries to operate with increased working capital. In March 2021, a vessel was forced aground due to intense winds…

NGOs & Charities

When you’re entrusted with funds provided by sponsors, transparency, compliance, and robust governance are critically important to maintaining your credibility. We help you implement controls to safeguard your integrity so you can press forward with delivering your purpose.

Government

Government organizations are under increasing pressure to do more with ever fewer resources available. To optimize social returns, it is important to ensure the structural sustainability of financial operations and to quantify risks.​

Sustainability in Switzerland: Recent developments

The Federal Council in Switzerland wants to make sure that the Swiss financial sector will play a leading role in sustainability. To help accomplish this, it published an action plan in December for the period 2022-2025. Furthermore, the Swiss supervisory authority FINMA issued additional guidance on how financial institutions need…

Treasury

Liquidity buffer: a matter of customized solutions

Financial setbacks can occur due to, for example, higher construction costs, inability to invoice due to IT problems, or production falling behind due to staff shortages. Savings, also called liquidity buffer, give you some time in such situations to take measures to resolve the incidents. If these temporary liquidity shortfalls…

Getting a grip on the cash strategy

When a positive operating cash flow is realized, it is easier for a company to invest in acquisitions, fixed assets and innovation, for example. On the other hand, a negative operating cash flow can be an indication that the survival of an organization in the long term may be at…

Savings modelling series – How to determine core non-maturing deposit volume?

Identifying the core of non-maturing deposits has become increasingly important for European banking Risk and ALM managers. This is especially true for retail banks whose funding mostly comprises deposits. The last years, the concept of core deposits was formalized by the Basel Committee and included in various regulatory standards. European…

ING’s perspective on deposit modelling: expert opinions, data, and common sense

In some European countries, savings rates appear to have hit a limit where they have stayed at a low level for a few years, despite interest rates moving down. This would suggest a structural shift where the relation between interest rates and savings rates has broken down. How can banks…

The impact of liquidity spread risk on banks’ earnings

External client rates can be split up in an interest-rate component, a liquidity spread and a margin covering, for example, operational and credit risk. To limit the risk of a decline in profitability, banks often hedge the interest-rate risk as part of their risk management framework. Since the global financial…

Why is modelling non-maturing deposits essential?

For banks, using variable savings as a source of financing differs fundamentally from ‘professional’ sources of financing. What risks are involved and how do you determine the return? With capital market financing, such as bond financing, the redemption is known in advance and the interest coupon is fixed for a…

A comprehensive guide to Credit Rating Modelling

For all the criticism that rating models and credit rating agencies have had through the years, they are still the most pragmatic and realistic approach for assessing default risk for your counterparties. Of course, the quality of the assessment depends to a large extent on the quality of the model…

Zanders enters Middle East with ADGM office

From there, the financial consultant further expands its track record in the global market for treasury, risk and finance services. As capital of the United Arab Emirates, Abu Dhabi is home to large corporates, investment banks, fintechs, private equity firms and venture capitalists, asset managers and the largest sovereign wealth…

Working Capital Management…

Much has been written about COVID-19, its related shutdowns, financial impact and high levels of disruption caused. Although the direct effects of the virus have probably come to a halt, corporates are still facing its (in)direct consequences to this day. As the economy attempts to return to business as usual,…

Taulia’s Supply Chain Finance Solution

Efficiently managing working capital becomes more and more important for corporates in the current challenging economic conditions and disruptions in the supply chain. As a result, the market has seen an increased demand for early payments of receivables from corporates. Managing working capital is essential in maintaining the health or…

How to setup a Vendor Supply Chain Finance Process in SAP

The debtor’s bank account will only be debited on due date of the payable; hence the bank finances the differential between the due date and the actual payment date towards the beneficiary for this pre-determined fee. This article elaborates on why and how corporates set-up an SCF scheme with their…

Climate change risk

The Working Group II contribution to the IPCC’s Sixth Assessment Report states that “climate change is a grave and mounting threat to our wellbeing and a healthy planet”. It is a formidable, global challenge to transition to a sustainable economy before time is running out. Banks have an important role…

Providing possible technical solutions for CLS in SAP Treasury

The CLS system was established back in 2002 and since then, the FX market has grown significantly. Therefore, there is a high demand from corporates to leverage CLS to improve corporate treasury efficiency. In this article we shed some light on the possible technical solutions in SAP Treasury to implement…