Last August, the Financial Accounting Standards Board (FASB) issued an update that simplifies accounting rules around hedge accounting. The update is effective for public companies in 2019 and private companies in 2020, but early adoption is permitted. With several options available in the implementation, the full impact of the new guideline must be carefully determined before setting an adoption date.
Without waiting for the final terms of the new prudential treatment of notional cash pooling, several sponsor bank institutions have decided to position for clear withdrawal of their pooling services, says Solenn Le Lay, associate director at Redbridge.
In cash pooling, companies have a choice between using their bank partner or relying on the functionalities of their treasury management system (TMS) to manually (or semi-manually) manage their deposits. Redbridge reviews the advantages and disadvantages of each solution.
The relationships that corporate treasury maintains with banks to manage cash operations are some of the most complicated and often confusing in the entire business. Because of the general misunderstanding of the cash management services bought from banks and the lack of available time in most treasury organizations, many companies perform only a cursory review of the information banks provide on service usage and costs each month. In some parts of the world, banks are not yet even providing the details of the number of transactions completed or their cost which leaves geographical blind spots in many organizations. There are literally millions in errors taking place each month that go unnoticed and we simply have to do a better job. By most estimates these errors range from 5% to 10% of our total bank fee spend and that represents real money in most companies. So, what is there we can do?
Bridget Meyer, senior director of Redbridge Analytics, presents in the Demo Pit at EuroFinance’s International Treasury Management conference 2017.
Regulatory changes over the past ten years in checking, transfers, withdrawals and payments by card, together with the arrival of new, nonbank players, have significantly disrupted the classic banking business model for cash management services.
Knowing how your company stacks up against best practices and overall costs of acquiring your card-based sales is becoming more important, especially given the increasing growth of e-commerce and overall card-based sales, writes Aeron Sharp.
The mid-summer announcement of the potential abandonment of LIBOR indices by the end of 2021 is raising concerns among both banks and companies. The primary question is the relevance of the new benchmark rates, writes Muriel Nahmias.
