GTNews has featured an article by Justin Silsbury, iGTB’s Liquidity Consultant, on how the landscape for liquidity post-Basel III is completely changing for both banks and corporates.
Silsbury argues that the introduction of Basel III has resulted in the biggest shake up within cash and liquidity management for a generation, with banks being forced to reassess their relationships with their corporate clients, and corporations likewise having to re-assess how they manage liquidity and working capital.
Yet despite a raft of seemingly prohibitive new regulations, many banks are now seeing possibilities beyond or even because of Basel III, Silsbury continues. Driven by advances in data processing and analytics, they are providing their corporate clients with new, value-adding services, replacing lost interest with new fee income. Silsbury states that whether by helping their corporate clients invest their money in off balance sheet investments, or offering advanced cashflow forecasting and liquidity solutions, banks are taking a matter of compliance and turning it into a novel and commercially net-positive activity.
Silsbury concludes that as the industry landscape of liquidity and cash management has reached new levels of complexity, the solutions must also be highly flexible and customisable, but their successful deployment will hinge on closely collaborative relationships between banks and corporates, making use of each other’s expertise wherever it is available.
To read the full article, please go here.