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Treasury Strategy & Transformation
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Liquidity Management

by Chrystal Pozin, Principal, Treasury Strategies

The global credit crunch has forced companies to rebalance their liquidity portfolios and reevaluate cash management processes and providers. Corporate treasurers are reducing credit exposures in their cash portfolios and reviewing and enhancing processes to ‘bullet-proof’ treasury operations so that they can safeguard every dollar that flows through the financial value chain. By strengthening controls, treasurers will also ensure that they can continue to focus on emerging strategic responsibilities and not be distracted by ‘the crisis of the week’.

Going forward, treasurers note that they will be further balancing their portfolio, presenting opportunities and threats to financial services providers.

As corporations look to automate and strengthen basic liquidity functions and focus on opportunities to create value, banks have unprecedented opportunities to deepen relationships. Banks are assuming a greater role in helping companies consolidate, monitor and invest liquidity through new information services and enhanced sweep and investment offerings. By helping their treasury clients automate and safeguard liquidity activities, banks are laying a foundation to support the development and delivery of the next generation of treasury service products that meet the emerging strategic needs of corporate treasurers.