Global Banking and Finance Review has featured an article by Justin Silsbury, Liquidity Consultant at iGTB, on how the landscape for liquidity is changing for both banks and corporates after the introduction of Basel III regulations.
Basel III has resulted in seismic shifts in cash and liquidity management, Silsbury argues, 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.
But despite the restrictive nature of the new regulations, many banks are now seeing possibilities beyond, or even because of, Basel III. 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 be highly flexible and customisable. Furthermore, their successful deployment will hinge on closely collaborative relationships between banks and corporates, making use of each other’s expertise whenever possible.
To read the full article, please go to page 68 here.