Managing a global treasury is challenging. It’s difficult to manage cash investments and debt around the world; monitor and mitigate global risks; and transact in unfamiliar markets.
Various treasury structures such as regional treasury centers or in-house banks are potential solutions. Drawing on our comprehensive understanding of such operations, Treasury Strategies helps clients design and optimize treasury structures to achieve:
- Economies of scale
- Improved liquidity
- Greater visibility of cash
- Reduced bank fees
Managing payments, liquidity and risk management from a central location may not be the right solution for your organization. Timing issues, language barriers and local regulatory challenges may point to a regional solution. We can help you evaluate whether regional treasury centers make sense for your organization. And if so, we can help you design and implement.
It’s almost always better to use your own cash to fund operations. In-house banking can support centralized lending, investment and borrowing activities across an organization. Our expert team will evaluate whether this makes sense. If it does, we’ll assess your options and help establish or optimize your in-house bank.
Centralizing FX execution (either globally or regionally) can allow treasury to better hedge FX risk and gain netting opportunities. Our experienced professionals will help you develop a business case as well as design and implement your FX Centers.
Centralized processing for payments increases working capital, reduces costs and improves control. We’ll help you determine the value of a payments factory, then establish a factory, and combine payments operations across the organization to gain economies of scale.
The results are in and reveal an important area of opportunity neglected by corporations. On average, the 135 respondents to our Bank Fee Analysis (BFA) Flash Survey spend in excess of $250,000 per year on bank services and maintain millions of dollars of deposits.
Second quarter results are in, and NDepth Bank Fee Analysis revealed that Insurance companies are earning well below market rate on their cash balances.
H.R. 2319/S. 1117 – The Importance of Restoring State and Local Government Access to Money Market Funds
New MMF regulations that were implemented in October 2016 are having major negative consequences for issuers and borrowers of debt held by money market funds. Specifically, Tax-Exempt MMFs (TE MMFs) are closing and assets are leaving. This is drying up a very important municipal financing conduit. Additionally, the flight of assets out of Prime MMFs is resulting in higher borrowing costs for municipalities as the pool of available capital decreases.