In an article for GTNews, Deutsche Bank’s David Berse assesses effective deposit safety practices in a dynamic risk environment

As corporate treasurers now manage historically-high stockpiles of cash, strategies to accurately mitigate counterparty risk that ensure cash is safely and efficiently deployed are more crucial than ever. At the same time, banks are dissuaded from deposits due to both the Basel III liquidity coverage ratio as well as negative interest rates, which are sweeping across Europe and Japan.

In response to these intensifying cash management pressures, David Berse, Director, Trade Finance and Cash Management for Corporates – Sales Global Transaction Banking, Deutsche Bank, writes for GTNews regarding the effective strategies being deployed by the industry.

For Berse, the advancement of deposit rating methodologies by rating agencies that gauge a bank’s ability to fulfil depositor obligations are a major development.

He writes: “With the issuing of the deposit rating, the rating agencies are providing a key component that should be incorporated to gain a more comprehensive understanding of risk. This is a helpful step forward and one that more companies are recognising and utilising within their risk analysis.”

To read the full article, please click here.

Leave a Reply

Your email address will not be published.