Treasury banking is the management of a bank’s financial assets and liabilities, including digital cash flow, investments, and risk management.
Treasury banking responsibilities
- Cash flow: Monitoring members digital cash flow, forecasting future cash flow, and establishing cash position
- Liquidity: Ensuring there’s enough liquidity to meet financial obligations
- Risk management: Managing and mitigating financial risks
- Investments: Pooling available securities and cash for investment
- Deposits: Administering deposit activities, including currency, coin, and remote deposits
- Funds transfers: Transferring funds across payment networks.
Treasury banking goals
The goal of treasury banking is to maximize profitability by ensuring sufficient liquidity and capitalizing on market opportunities.
Treasury banking in practice
Treasury banking involves a mix of strategic forecasting, investment analysis, and risk management techniques. Treasurers use real-time data to make decisions about where to allocate funds.
Treasury banking is also known as digital cash management
