Multinationals stand to gain substantially from a
reorganization of their treasuries to a regional structure
and a rationalization of the number of cash management
relationships. A regional structure allows for substantial
cost reductions through better liquidity management, reduced
treasury teams, and lower network maintenance costs. These
benefits are big: according to a recent survey by
PricewaterhouseCoopers, a 1% improvement in liquidity
management could improve a corporate's share price by 120
basis points.
The strategy is not without drawbacks, as Pieter ten Bosch, cash
management development manager at Shell, says: "You gain a better
picture of cash movements for the region, but you inevitably lose
out on local expertise. The best solution for the region might not
necessarily be the best for each individual
country."
Benefits of
consolidationCutting back on the cash
management providers used in a region also generates big
...
