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Cash & Liquidity Management
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Through the Looking Glass: How to Manage Liquidity in 2016

by Lisa Rossi, Global Head of Liquidity and Investment Product Development, Deutsche Bank

Lisa RossiThanks to ongoing suppressed lending appetites and low interest rates, people have been discussing ‘the new normal’ since the financial crisis. But not only have these circumstances persisted, they have been exacerbated by further developments – from an increasingly heavy regulatory burden for banks, to negative interest rates and the consequences of monetary policies. This paradigm shift means that now is the time to review liquidity management strategies and consider how they can be optimised.

No longer is this merely a desirable objective; circumstances have now made it a fundamental. Indeed, we’ve become accustomed to hearing the problems of scarce (and costly) liquidity. But for those corporates with excess liquidity, the implications of today’s environment are just as grave.

Adapting to continuing developments

This year brings a set of important compliance deadlines that will (directly and indirectly) be the main driver for treasurers’ careful analysis and improvement of their liquidity management. Above all, recent years have transformed corporate-bank relationships beyond recognition. What was once a simple buyer-seller relationship has become a much closer partnership, and corporates struggling with the liquidity environment must first understand the market factors behind it.