TREASURY MANAGEMENT
Objective:
The objective of this course is to cover a selection of core treasury topics that will enhance the overall treasury management skills of participants in general and investment and liquidity management in particular.
Background:
The Treasury Group is a specialized function that exists within banks and large corporations. The group is responsible for a number of activities such as buying and selling of foreign exchange currencies in a centralized fashion; borrowing to meet liquidity requirements as well as lending and placing excess cash to ensure all resources are usefully deployed; and depending on how the treasury group is structured, the function may also be responsible for managing and growing the investment portfolio including bonds, shares and any other financial securities. The functions are centralized because buying and selling currencies and borrowing and lending money require a certain skill set and infrastructure and rather than distributing it across an organization it is more efficient to create a dedicated group to support it.
As per regulatory order almost all BFIs have to augment their capital position many folds as compared to yesteryears. This has made the role of Treasury in BFIs more demanding and more accountable. As a result, more systematic approach is now needed to manage liquidity and investment portfolio by all BFIs.
In this course we aim to cover a selection of core treasury topics that will enhance the overall treasury management skills of participants in general and investment and liquidity management in particular.
Workshop Coverage:
Role of Treasury Department
- Treasury Controls
- Treasury Job Descriptions
- Treasury Centralizations
- Treasury Outsourcing
- Correspondent Banking Relations
- Credit Rating
Liquidity and Reserve Management
- Cash Forecasting Methods/Tools
- Cash Concentration
- Centralization
- Pooling and Sweeping
Investment Management
- Investment Criteria
- Investment Option
- Investment Strategy
- Outsourced Investment
- Risk Reduction Strategy
- Accounting for Investment
- Investment Management Policy and Procedures
Risk Management for Changing Interest Rate Risk
- Using Quantitative and statistical tools for Risk quantification
- ALM and Duration Techniques,
- Protecting NIM
- Use of Derivatives and Asset Backed Securities.
- Managing Fixed Income Securities Portfolio.
Treasury Systems
- Clearing and Settlement Systems/Procedures
- Fedwire, ACH, CHIPS, CHAPS,
- Continuous linked settlement system (CLS),
- Treasury Technology needs
- Treasury Management Systems
- SWIFT.
Foreign Exchange Risk Management
- Four dimensions of foreign exchange risk
- Forward contracts-deliverable/non deliverables (mechanics)
- Trading in forex and risk management.
- Accounting as per IFRS.
Target Audience:
Front Office, mid office and back office personnel treasury of Banks; interest rate risk desk of corporate treasuries; asset management (Merchant Bankers) companies with fixed—Income funds; and internal and statutory auditors etc.