The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Transaction banking revenues hit by Covid-driven fee slump

Transaction banking revenues have declined in the first six months of 2020, following three years of growth. Attributing this fall exclusively to coronavirus and low interest rates would be a mistake – there are other important factors at play.


Business intelligence provider Coalition’s latest Transaction Bank Index reveals that cash management revenues in the first half of this year were down to levels not seen since 2016. The report attributes this – unsurprisingly – to interest rates.

The interest rate environment has undoubtedly had a significant impact. “Other central bank actions in the form of QE alleviated the initial liquidity squeeze at the start of the Covid-19 crisis and have since resulted in unprecedented growth in market liquidity, putting further pressure on rates,” observes Karen Braithwaite, global head of transaction banking at Barclays.

Sabine Zucker_RBI_400.jpg
Sabine Zucker, Raiffeisen Bank International

Since the onset of the crisis, many corporates have held higher cash balances and have drawn down on their (uncommitted) lending facilities in order to have cash available when necessary.

The decline in transaction volume in the second quarter of this year has hit revenues. However, Sabine Zucker, division head trade finance and transaction banking at Raiffeisen Bank International, says it is important to be clear about what falls under cash management revenues.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?