Results for ‘funds’

Environmental and social risks in the prudential framework: Possible implications for banks

In October 2023, the European Banking Authority (EBA) published a report[1] with recommendations for enhancements to the Pillar 1 prudential framework to reflect environmental and social (E&S) risks, distinguishing between actions to be taken in the short term and in the medium to long term. The short-term actions are to…

Driving Treasury Innovation: SAP Digital Currency Hub 

In this article, we explore this stablecoin payments trial, examine the advantages of digital currencies and how they could provide a matching solution to tackle the hurdles of international transactions.   Cross-border payment challenges  While cross-border payments form an essential part of our globalized economy today, they have their own set…

A guide to optimize SAP Treasury business partner design and maintenance 

Additionally, business partners are essential in SAP for recording information related to securities issues, such as shares and funds.  The SAP Treasury Business Partner (BP) serves as a fundamental treasury master data object, utilized for managing relationships with both external and internal counterparties across a variety of financial transactions; including…

SAP Treasury conference in Amsterdam 

Of the many attending corporates and partners were offered the opportunity to hear the latest ins and outs of treasury transformation with S/4HANA.   Next to the enhancements in S/4HANA Treasury, customers had a clear need to understand what it could means for their Treasury and how they could achieve…

How Royal FloraHolland grew a global cash management bank relationship from scratch

Royal FloraHolland is a cooperative of flower and plant growers. It connects growers and buyers in the international floriculture industry by offering unique combinations of deal-making, logistics, and financial services. Connecting 5,406 suppliers with 2,458 buyers and offering a solid foundation to all these players, Royal FloraHolland is the largest…

Sony’s Global Treasury Transformation

Sony decided to start Digital Transformation (DX) of global treasury functions by launching the METRO Project officially in May 2018 and completed it by October 2020, working remotely under the COVID-19 global pandemic. One of the biggest achievements of this project is the automation of the FX trading process. It…

How Takeda centralized its payments

To standardize banking connectivity worldwide, record all financial instruments and increase cash visibility, Takeda implemented Kyriba Treasury as its TMS back in 2019. Subsequent to this initial implementation, a second phase of the project – to implement the Payments module of the TMS – was embarked upon in 2022. For…

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

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…