Report on Treasury Management of AB Bank Limited

With the ever increasing pace of change to regulation, compliance and technology in the financial sector, Treasury has increasingly become a strategic business partner across all areas of the business, adding value to the operating divisions of the company. Current market conditions also reinforce the need for corporate to ensure that their financial position is managed as efficiently as possible, with no excess working capital tied up in the business - the old adage ‘cash is king’ is certainly as relevant today as it has always been.

Treasury departments need to cover the complete financial environment; from capital structure and long term investments to liquidity and working capital management. If Treasury can drive improvements in the Purchase-To-Pay and Order-To Cash cycles, there can be a direct effect on the overall debt and investment requirements and thus on the capital structure required in the business. 

At the same time, the efficient use of secure systems can minimise operational risk, increase operational security and maximise straight through processing. Add to this automatic reconciliation of bank account data and Treasury can then manage exceptions rather than every item, giving them the time to devote to delivering value-added services across the company. 

As all treasurers are well aware, there are currently a significant number of developments in the financial markets, which affect most companies and their banks. 

Cash and liquidity management has always been a key task in every company to ensure debtor, creditor and stock levels are managed as efficiently and effectively as possible. When the business environment is more challenging, corporates can gain a competitive advantage through optimal management of every aspect of their financial position. As one treasurer of a multinational corporate commented at a recent cash management conference “During times of difficulty, treasurers demonstrate their true worth to the business”.