Treasury Management Internation Logo
Cash & Liquidity Management
Published  5 MIN READ
Please note: this article is over 10 years old. If you feel this article is inaccurate or contains errors get in touch here. Many thanks, TMI

Leveraging Banking Relationships for Cash Management Optimisation

by Joep Pessers, Treasury Manager, Fabory Group

Until 2004-5, treasury at Fabory was decentralised, with each local finance function managing its own bank relationships and credit facilities; however, we recognised that this arrangement was causing a variety of issues:

i) It was difficult to establish a global view of counterparty risk;

ii) The cost of borrowing was high without the ability to leverage the higher credit rating of the holding company;

iii) Bank relationships were fragmented, with a lack of economy of scale and disparate contractual arrangements, cost structures and technology;