Future of Bank Treasury Management
The continued economic instability and a tsunami of banking regulation over recent years has brought much change and challenge to the financial services industry. Against the backdrop of constantly changing local and regional regulations (which are not always harmonised), and ever growing political attention, the pace and scale of these developments has arguably changed the foundation of modern banking institutions. It can be argued that change initiated by the financial crisis has brought to the forefront previously forgotten divisions within financial institutions. None more so than Treasury.
In this paper, we examine the current landscape in which Treasury operates and focus on the challenges it needs to overcome to achieve its post-2015 vision. The paper's findings suggest that as financial institutions emerge from tackling immediate regulatory demands, Boards are increasingly turning their attention to what they may encounter over the horizon. The Treasury function has a critical role to play in shaping bank strategy as Treasury linked challenges such as deleveraging balance sheets, maximising capital efficiency and improving risk-return ratios are here to stay for the foreseeable future.