Turning regulatory pressures into tangible returns: Managing the transformation of the banks’ growing treasury function

Since the financial crisis, bank treasuries have taken on a much more high-profile role at the centre of many banks’ operations. Denny Dewnarain and Arnaud Picut from Misys explain why this shift has happened, what it means and how banks have started to respond.

The role of the treasurer has changed fundamentally and forever. Before the recent liquidity crisis and the regulatory reforms that followed, the Treasurer’s role was, in essence, to execute what the asset and liability committee (ALCO) had decided. Today, the Treasurer has a much more high profile and proactive role, because of the way in which regulations affect a bank’s profitability, margins and the ability to raise money. So today, instead of providing a service to individual business lines, the Treasurer is like the “DNA” of the bank, indirectly controlling the impact on the trading, banking and lending books, including risk.

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Treasurers now need to have an enterprise-wide view on the profitability of the bank. This is a significant shift from a static view.

Denny Dewnarain

Solution Lead for Capital Markets at Misys