Detailing the wonderful worlds of treasury management and the history of banking
The Financial Stability Oversight Council (FSOC) plays a pivotal role in overseeing the stability of the U.S. financial system. For corporate treasury managers, understanding the FSOC’s functions and its impact on financial practices is crucial. Here are two significant ways the FSOC relates to corporate treasury management. 1. Monitoring Systemic Risk The FSOC’s primary mandate…
The Financial Industry Regulatory Authority (FINRA) plays a crucial role in regulating broker-dealers and ensuring market integrity. For corporate treasury managers, understanding FINRA’s influence and compliance requirements is essential for managing investments and maintaining financial stability. Here are five key reasons how FINRA relates to corporate treasury management. 1. Regulation of Broker-Dealer Relationships Corporate treasurers…
The Financial Crimes Enforcement Network (FinCEN) plays a vital role in safeguarding the financial system from illicit activities. For corporate treasury managers, understanding how FinCEN operates and its relevance to their responsibilities is essential. Here are three key ways in which FinCEN relates to corporate treasury management. 1. Anti-Money Laundering (AML) Compliance FinCEN is at…
In the world of corporate finance, the relationship between the Federal Deposit Insurance Corporation (FDIC) and corporate treasury management is both significant and multifaceted. The FDIC plays a critical role in maintaining stability and public confidence in the U.S. financial system. Here are eight reasons how the FDIC relates to corporate treasury management and why…
Corporate treasury management is the strategic handling of a company’s financial resources to manage liquidity, reduce financial risk, and maximize returns on investments. Within this framework, companies must navigate a complex landscape of regulations and compliance requirements. One key player in this regulatory environment is the Department of Justice (DOJ). Understanding the DOJ’s role and…
In the complex world of financial management, where every decision can impact the bottom line, the role of oversight and protection cannot be overstated. One key player in this arena is the Consumer Financial Protection Bureau (CFPB), an agency in charge of ensuring fairness and transparency in consumer financial products and services. While its primary…
In the fast-paced world of corporate finance, managing risks effectively is not just a prudent practice but a strategic imperative. For many corporations, especially those with exposure to volatile commodity prices, fluctuating interest rates, or unpredictable foreign exchange markets, derivatives play a pivotal role in safeguarding profitability and ensuring stability. At the heart of this…
You might be asking yourself how does treasury management fit within a financial institution? If so, this article is for you! As you are probably aware, financial institutions play a critical role in the global economy by providing a wide range of financial services, from banking and lending to investment and wealth management. To effectively…
In this article, we’ll compare and contrast these two approaches to help you understand their benefits, drawbacks, and which one might be the right fit for your organization. Centralized Treasury Management Centralized treasury management involves consolidating all financial activities, including cash management, investment decisions, and risk management, into a single central unit within the organization.…
In the context of treasury management, cost centers and profit centers represent two distinct approaches to managing financial resources. Let’s explore the differences between these two concepts: Cost Center: Profit Center: Basically, the key difference between a cost center and a profit center in treasury management lies in their primary focus and purpose. Lastly, cost…
