By Joseph Neu
Bank relationship trends continue to be a hot topic in recent forums for treasury professionals. The focus of discussion seems to fall into three major areas: 1) the little-understood consequences of global banking regulations; 2) the increasing tension between local and global banking partnerships; and 3) treasury practitioners’ increasing impatience with banks’ internal sales drivers. All these trends affect the top global banks the most. June 11, 2013
A new process could provide corporates and banks more flexibility in trade finance. June 10, 2013
is aggressively rolling out a new form of trade payment called the Bank
Payment Obligation (BPO). The new process could be a big help to banks,
according to Tessa Teo, global account director, ASEAN for SWIFT.
Volume of leveraged loan repricings skyrockets. May 03, 2013
“borrower’s market” phenomenon has passed a new milestone, with
leveraged loan repricings hitting a record volume so far this year. Some
of the repricings have had low or no fees attached, meaning borrowers
were able to call up lenders and demand a lower rate.
A new survey reveals that despite indications some companies are
using both global and local banks, global banks are still dominant. April 25, 2013
as luck favors the bold, in global banking, regulations favor the big
and bold. According to a new survey from financial consultancy J&W
Associates “neither the continuing financial crisis nor the increasing
cost of compliance with new regulations” has stemmed the dominance of
global network banks in the area of worldwide cash management.
A few topics on International Treasurer’s radar screen this week. April 24, 2013
topics up for further review came out of this week’s International
Treasurer editorial meeting, including companies using multiple in-house
banks, share-holder activism and bank structures abroad.
But the costs of expanding budgets will prompt higher pricing for bank services. April 23, 2013
risks created by Dodd-Frank will have banks more focused on compliance
in 2013, expanding budgets. This will likely increase costs for
As banks concentrate on capital, others will step in to fill the void when it comes to trade finance. March 21, 2013
a certainty that new regulations will raise the cost of doing business
worldwide. And according to consultancy Greenwich Associates, a big
driver of cost increases in trade finance will be Basel III. The good
news is that although new capital rules have caused many banks to step
back from offerings (read, European banks), other banks and non-banks
are stepping in to fill the void.
CFTC Commissioner Scott O’Malia says regulators remain undermanned when it comes to data. March 19, 2013
The buzz phrase “Big Data” is everywhere. It’s certainly been on the leading edge of many a marketing pitch to corporations over at least the last 18 months. But perhaps where vendors should really be focusing their Big Date solutions marketing is at the federal government.
By Geralyn Frances
JP Morgan comes up with some creative answers to treasury’s changing and challenging investment environment.
While cash managers are busy handling their companies’ surge in cash balances, changes triggered by regulatory reform and a host of other external factors could be threatening their liquidity. With this in mind, one bank has used this as motivation to create innovative products in response to treasurers’ search for liquidity solutions to counter the challenges these changes bring about. Flexibility, automation and global reach have resulted in some smart answers to these threats. February 15, 2013
By Joseph Neu
Out of the jockeying taking place amongst transaction banks in the global “top-five” list comes a buzz phrase that accurately sums up what guides global transaction bank relationships, apart from the credit relationship, and the challenges ahead for them. Credit for calling attention to this buzz phrase goes to JP Morgan Treasury Services, which used it in a recent write-up on liquidity management best practice: February 15, 2013
A snapshot of what’s on International Treasurer’s radar screen this week.
This week’s International Treasurer editorial meeting yielded several topics that we will explore in the coming weeks. These included a look at where the money is going now that TAG (transaction account guarantee) program has ended. Also up for further review is the growing trend of companies moving further out the yield curve; also, at look at how companies are increasingly considering using options. February 08, 2013
There may still be lots of regulatory uncertainty surrounding banks, but they still want to lend. February 05, 2013
Despite all of the regulatory uncertainty, banks are eager to lend and
provide services. And while they’re being more selective, treasurers
themselves should make sure the relationship works, too.
Net interest margins are narrowing across the board as banks search for yield. January 29, 2013
have scaled back some of their lender-friendly loan structures like
Libor floors and extra covenants. And borrowers soon could get even
better deals from lenders. That’s the conclusion some analysts have
drawn from the narrowing of net interest margin (NIM) at several of the
biggest US lenders, disclosed in their fourth-quarter financials.
The search for higher profits could lead banks to take inappropriate levels of risk. December 27, 2012
banks may be ignoring history in their search for yield. According to
the Office of the Comptroller of the Currency, standards for leveraged
loans have weakened over the past 18 months and yields on high-risk
assets are at record lows and risk continuing to rise. These practices
are similar to those seen in the years just before the 2008 financial
By Anuja Pande Joshi
Latin America has become an international strategic priority for Bank of America Merrill Lynch, which is offering end-to-end business banking in the region.
With much of the globe still struggling to regain its footing following the devastating economic crisis that began in 2008, it’s difficult to find many bright spots or areas of growth. But there remain a few, most notably parts of Asia and Latin America. These are regions where businesses are rushing to help keep their balance sheets healthy. But they can’t do it alone. In order to be successful they need bank partners with the right tools and reach. In Latin America, Bank of America Merrill Lynch (BofAML) is increasingly becoming the go-to bank for businesses both local and international.
October 09, 2012
By Joseph Neu
Over the next several years, corporate treasurers should expect to witness fundamental changes in the banking sector as banks seek to reorient their activities to account for new regulatory requirements and a dynamic global business landscape. In response, bank relationship management needs to be recalibrated from its current focus on near-term counterparty risk. October 09, 2012
Europe's bank regulator says Europe’s banks have far to go in meeting capital requirements; lending to be crimped? September 27, 2012
European Banking Authority (EBA) said Thursday that if Basel III had
been in force at the end of December 2011, Europe’s biggest 44 banks
would have been about 199bn euros ($256bn) short in meeting their target
of holding quality assets that are 7 percent of total assets.
Regulatory effect will not crimp lending rates as banks and others have claimed. September 11, 2012
A new IMF study shows that financial reform will have only a “modest” impact on bank lending rates in the US, Europe, and Japan in the long term. This refutes banks’ claims that excessive capital requirements could put a damper on the ability of banks to lend and conduct other activities.
On par with Chile, South Korea … and the UK.
The US banking system is riskier than its peer group on most measures, according to a new report by Standard & Poor’s. Despite the Eurozone banking sector’s sovereign debt and capital woes, and the uneven effects of global regulatory changes, other G20 economies – except the UK – have bank systems that rank as less risky, according to the S&P “Banking Industry Country Risk Assessment: US,” published earlier this month. August 23, 2012
New Fitch survey reveals more woe and possibly more LTRO ahead for Europe’s banks.
August 21, 2012
Investors remained worried about the outlook for Europe’s banks, suggesting the conditions will get worse before they get better, a Fitch survey reveals. And many respondents expect banks to need a repeat of the ECB's 1tn euro long-term refinancing operations (LTROs).