The 2013 guide to Liquidity Management: Global in-house banking
Euromoney, is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024
Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

The 2013 guide to Liquidity Management: Global in-house banking

A Fortune 100 global technology company had complex commercial and inter-company flows. Treasury management functions were dispersed over numerous locations, multiple cash pools and stand-alone bank accounts, with no overarching liquidity structure. The result was poor cash access and utilization, added to eroding interest margins and process inefficiencies. The company used Citi Treasury Diagnostics to benchmark its treasury operations and gain insights on opportunities for improvement. To centralize control and visibility, Citi recommended a global cash pool for G3 and other major currencies; global cash aggregation with automated end-of-day zero balance sweeps ‘with the sun’ and ‘against the sun’ – moving liquidity positions to the appropriate concentration header account as the trading day moves – and, in addition, a multi-currency notional pool. Citi also assisted the company in defining a path towards consolidation of multiple finance companies and pool headers into a single offshore in-house bank (IHB) to manage centrally all liquidity outside the US; and in establishing a full-service inter-company netting centre within the IHB.

Gift this article