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Cash & Liquidity Management
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Making Corporate Cash Work Harder

by Dominic Broom, Head of Sales and Relationship Management for BNY Mellon Treasury Services EMEA, and Gerry Barber, Managing Director, Strategic Development and Investment Management Group, BNY Mellon

High yields are no longer a valid justification for cash and liquidity management inefficiencies, say BNY Mellon’s Dominic Broom and Gerry Barber. Instead, corporate cash concerns must be effectively addressed through expert solutions that stem from a mixture of local and global bank provision.

Corporate attitudes towards cash and liquidity management are undergoing a significant shift. Such a change is prompted by liquidity constraints and market turbulence caused by the financial crisis, which revealed a low-risk exercise to be – in reality – fraught with hazards.

Pre-crisis, corporate cash management was plagued with weaknesses, not least of which were the lack of end-to-end transaction visibility and the excess of (costly) operational inefficiencies. Of course, these could be justified by the ease with which corporates could access affordable liquidity, as well as the strong rates of return offered on cash deposits.