At a time when banks are more reluctant than formerly to take short-term deposits from clients with surplus liquidity, Lisa Rossi, Global Head of Liquidity and Investment Product Development and Head of Institutional Cash Management UK at Deutsche Bank, tells Euromoney that strong liquidity management is more important than ever for corporates.
The Euromoney article, entitled “Liquidity management stress causes bank-to-corporate tug of war”, looks at the radically changed liquidity landscape in which corporate treasurers find themselves today.
Rossi, who recently wrote a whitepaper for Deutsche Bank entitled “Liquidity Management: Thriving in a New World” that pinpoints and analyses these relatively new constraints in detail, explains that both banks and corporate treasurers will benefit from understanding each others’ painpoints. While banks must delve into the detail of how their corporate clients’ treasury operations work, “treasurers should prioritise understanding their own operational flows; this will allow them to most effectively manage their short- and medium-term funding, ensuring optimal returns where possible.”
Rossi believes treasurers must learn to act more strategically in this changed world: “Banks have spent time and resources in updating processes. They have invested considerable money into their systems and into increasing automation and information for their clients. This has helped treasurers, in turn, to have more time to spend on the strategic elements of the job.”