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