Comprehensive Analysis of Bank Treasury Management Practices

This report provides a detailed overview of bank treasury management, encompassing its organizational structure, including front, mid, and back offices, and the roles within each. It explores the core functions of the treasury, such as liquidity management, ALM, and risk mitigation, alongside essential reporting requirements. The document further delves into asset and liability management (ALM) strategies, interest rate risk, and hedging techniques, including yield curve analysis and maturity gap considerations. Liquidity and reserve management are discussed, covering sources, needs estimation, and various strategies. The report also examines treasury desks, including ALM, money market, foreign exchange, and fixed income, offering a comprehensive understanding of bank treasury operations. Furthermore, it explains the importance of segregation of duties, monitoring controls, and various reporting aspects within the treasury function.