Results for ‘funds’
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…
Read moreProviding possible technical solutions for CLS in SAP Treasury
Continuous Linked Settlement (CLS) is an established global system to mitigate settlement risks for FX trades, improving corporate cash and liquidity management among other benefits. 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…
Read moreThe EBA faces banks with a new supervisory outlier test on net interest income
In this article, we focus on one of these consultation papers, which concerns updates to the supervisory outlier test (SOT) for the Economic Value of Equity (EVE) and the introduction of an SOT for Net Interest Income (NII). The current version of the IRRBB Guidelines, published in 2018, came into…
Read moreHow can treasury become a sustainable function?
One of the key subjects in this re-assessment is the implementation of tangible and transparent Environment, Social, and Governance (ESG) factors into the business. Treasury can drive sustainability throughout the company from two perspectives, namely through initiatives within the Treasury function and initiatives promoted by external stakeholders, such as banks,…
Read moreImpact of climate change on financial institutions
The Bank of England is even of the opinion that climate change represents the tragedy of the horizon: “by the time it is clear that climate change is creating risks that we want to reduce, it may already be too late to act” [1]. This article provides a summary of…
Read moreTargeted Review of Internal Models (TRIM): Review of observations and findings for Traded Risk
The EBA has recently published the findings and observations from their TRIM on-site inspections. A significant number of deficiencies were identified and are required to be remediated by institutions in a timely fashion. Since the Global Financial Crisis 2007-09, concerns have been raised regarding the complexity and variability of the…
Read moreNavigating Structural Shifts: ING Experts Discuss Deposit Modeling in a Low-Interest Landscape
The low interest rate environment has faced banks with structural changes in customer behavior and converging products such as savings and current accounts. ING, one of Europe’s largest players in the savings market and a long-term client of Zanders, has positioned itself as one of the frontrunners in this environment.…
Read moreManaging Virtual Accounts using SAP In-House Cash
SAP IHC is a module that facilitates a full suite of payment factory processes. It can be seen as an intercompany position subledger with a set of fancy features like POBO payment routing, bank statement allocation, arms-length intercompany interest calculations, out of the box payment and bank statement interfaces with…
Read moreModel Risk Management
Financial institutions rely on complex quantitative models, processes and systems for business steering, risk management, financial reporting and to comply with regulation. The risk of errors in these models due to incorrect development, implementation or use is therefore of primary concern to internal and external stakeholders. At the same time,…
Read moreHow to set up Intraday Bank Statement reporting in SAP
Intraday Bank Statements offers a cash manager additional insight in estimated closing balances of external bank accounts and therefore provides the information to manage the cash more tightly on the company’s bank accounts. Compared to intraday bank statement reporting, end-of-day (EOD) bank statement reporting is only available the next calendar…
Read moreHow to set up Intraday Bank Statement reporting in SAP
Intraday Bank Statements offers a cash manager additional insight in estimated closing balances of external bank accounts and therefore provides the information to manage the cash more tightly on the company’s bank accounts. Compared to intraday bank statement reporting, end-of-day (EOD) bank statement reporting is only available the next calendar…
Read moreVirtual Account Concepts
There are many concepts in which a virtual account can be deployed. In this second article on ‘How to setup virtual accounts in SAP’, we depict the concept that can be implemented in SAP the easiest without needing specialized modules like SAP Inhouse cash; all can be supported in the…
Read moreWhy would a Treasury implement virtual accounts? How to setup virtual accounts in SAP, Part I
Are you interested in how these can help your Treasury and how to implement them in SAP? Look no further; in this article we will guide you through the first steps of virtual accounts in SAP. What are virtual bank accounts? In its most basic form, a virtual bank account…
Read moreMuniFin builds balance sheet strength for sustainable growth
As MuniFin has been growing fast in recent years, the bank is now under the supervision of the European Central Bank (ECB). This means complying with the corresponding regulations, particularly in the field of asset and liability management (ALM). How does the organization deal with the new ALM challenges? MuniFin,…
Read moreUpdated IRRBB guidelines pose new challenges for banks
This long-awaited update for the management of Interest Rate Risk in the Banking Book (IRRBB) builds on the original guidelines published in May 2015. It also effectively is the translation to European law of the IRRBB Standards published by the Basel Committee on Banking Supervision (BCBS) in April 2016. Market…
Read moreMortgage valuation, a discounted cash flow method
The most common valuation method for mortgage funds is known as the ‘fair value’ method, consisting of two building blocks: the cash flows and a discount curve. The first prerequisite to apply the fair value method is to determine future cash flows, based on the contractual components and behavioral modelling.…
Read more7 Steps to Treasury Transformation
Treasury transformation refers to the definition and implementation of the future state of a treasury department. This includes treasury organization & strategy, the banking landscape, system infrastructure and treasury workflows & processes. Introduction Zanders has witnessed first-hand a treasury transformation trend sweeping global corporate treasuries in recent years and has…
Read moreThe Matching Adjustment versus the Volatility Adjustment
On April 30th 2014, the European Insurance and Occupational Pensions Authority (EIOPA) published the technical specifications for the preparatory phase towards Solvency II. The technical specifi cations on the long-term guarantee package offer the insurers basically two options to mitigate ‘artificial’ fluctuations in their own funds, the Volatility Adjustment and…
Read moreUltimate Forward Rate: does it create more risk?
The UFR is a method of adjusting the market rate at which future commitments are discounted. Interests for durations of more than 20 years are adjusted by converging the one-year forward rate towards the Ultimate Forward Rate of 4.2%. The introduction of the UFR was an attempt to address three…
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