Bank Treasury Management Assignment 2022

Slide 1: Bank Treasury Management
Nature
Functions of Entire Treasury
1. Interactions with various trading and delivery teams
2. Liquidity Management
3. ALM
4. Striking deals and earning from trading
5. SLR and CRR maintenance
6. Reporting to respective authorities
Organization Structure
Front Office
Responsible for day-to-day trade execution, and liquidity management of the bank. Functions
are:
1. Working with the business to identify exposures;
2. Providing market information and pricing advice to the organisation;
3. Cash management;
4. Dealing (money markets, FX, interest rates, long-term funding); and
5. Deal entry into the treasury management system (TMS).
Back Office
A treasury has: MM, CM, FX and Derivatives desks.
Each desk has multiple dealers with different level of authority.
User Roles:
Treasurer
Chief Dealer
MM Dealer
CM Dealer
FX Dealer
Derivative Dealer

Responsible for delivery and settlement of all transactions in the front office. Functions are:
1. Coordination with front office to ensure optimum use of all treasury dealing systems
2. Internal control, check, confirmation and settlement activities
3. Ensuring compliance
4. Monitoring SLR/CRR maintenance and submission of compliance
5. Audit Facilities
Mid Office(conscience keeper)
1. Management of Risks
1. Market risk: Interest movement and fx movement
2. Liquidity risk
3. country risk
2. Independent market risk monitoring, measurement, analysis and reporting to banks's ALCO
3. Formation of investment policy for bank's treasury
4. Formation of ALM policy for the bank
Organogram
Back Office:

Organizational Chart
Segregation of Duties
Different individuals responsible for different activities of deal life cycle.
At least not two sequential tasks to same person
1. Identification of positions and dealing
2. Authorization of deals
3. confirmation
4. authorization of settlements
5. Release of Settlements
6. Accounting
Monitoring Controls and Treasury Reporting
1. To inform senior mgt of exposure
2. To demonstrate treasury activities is within the authorized parameters
3. To promote analysis of activities, efficiency and control
Reporting:
dealing of foreign and local currency from one place
specific task can be allocated to all personnel
front and back segregated
back office under direct control of top executive
Regulating to management is the most common form of monitoring activties