Results for ‘funds’
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…
Read moreWhy 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…
Read moreA 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…
Read moreZanders 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…
Read moreWorking 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,…
Read moreTaulia’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…
Read moreHow 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…
Read moreClimate 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…
Read moreProviding 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 moreHow Royal FloraHolland grew a global cash management bank relationship from scratch
In a changing global floriculture market, Royal FloraHolland created a new digital platform where buyers and growers can connect internationally. As part of its strategy to offer better international payment solutions, the cooperative of flower growers decided to look for an international cash management bank. Royal FloraHolland is a cooperative…
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…
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