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Lecture 1: Introduction to Treasury Management - Coggle Diagram
Lecture 1: Introduction to Treasury Management
Function
Administer, monitor, and manage the sources of fund and uses of fund
Responsibility for the flow of funds with purpose of maximum profitability
Scope of treasury
Cash flow and liquidity management
Risk management (interest rate risk, foreign exchange risk, capital risk, …)
Management of associated financial risks
Control and management ò the bank’s balance sheet
Treasury structure of large commercial banks
Risk management
Balance sheet risk
Wholesale funding
Strategic Funding
Balance sheet management
Head of balance sheet structure
Head of capital manager
Head of balance sheet management
Internal counsel
Head of risk modeling and analysis
Policy
Risk reporting
Systems
Fund transfer pricing
Quants services
The finance team
IFSR Analyst (manager, financial, reporting)
Financial compliance officer
Graduate or co-op
Asset and Liability Committee
Role of ALCO
Discuss economic and market conditions
Measure and monitor performance
Develop risk management profiles
Develop short term and long term asset and liability structure and risk strategies
Effective Treasury management procedures
Policy statemen
Formulation of ALCO and Risk management committee (RMC)
Centralize cash and exposure management functions
Evaluated and quantify risk in term of time scale and amount
Employ skilled specialist treasury personnel
Treasury Management Strategies and Procedures
Documented operational guidelines: consistency, manuals, authorities, products and systems; reporting and audit
Management and operation: centralized or decentralized treasury operations
Cash Management: cash disbursement and collection, working capital, arranging cash flows
Funds management: financing and investing, policy; strategies; systems; procedures; audit; review, instruments used, markets, currencies
Exposure management: techniques, measurement, management, systems and controls, reporting