The concept of risk refers to uncertainty with regard to the outcome of an event. The uncertainty might imply potential future losses. Foreign exchange transactions involve risk in terms of…

What is Exchange Rate Determination? Exchange rate determination refers to the process by which the value of one currency is established in terms of another currency. In other words, it…

What is Liquidity Management? Liquidity management refers to the strategic planning and control of a company's cash and liquid assets to ensure it has enough funds to meet its short-term…

What is Cash Concentration? Cash concentration refers to the process of centralizing and optimizing a company's cash resources from various accounts or subsidiaries into a single primary account. This financial…

What is Cash Management? Cash management is a process that includes several steps, such as collection of payments, control of disbursements, coverage of shortfalls, forecast of cash requirements and investment…

Cash forecasting is extremely vital to banks for funding day-to-day operations and meeting long-term investment objectives. However, in the current economic and regulatory environment, it is all the more important…

After the amendment of the Basel Accord of 1996, financial authorities have specified that all banks should maintain reserves. These reserves should be capital that is sufficient to protect against…

Treasury and Risks The treasury department of a bank takes care of a range of complex tasks associated with the internal and external stakeholders, and ensures smooth functioning and value…

The RBI plays a major role in the payment and settlement system in India. It established Real Time Gross Settlement (RTGS) as well as Securities Settlement System (SSS). SSS helps…

The treasury process allows organisations to minimise the cost of transactions, reduce organisation costs and bank costs, optimise the organisation’s finances and manage risks. The routine procedures or processes involved…