The European Banking Authority (EBA) Liquidity Management Working Group has published its first thought leadership paper on “Managing Corporate Liquidity and Bank Liabilities: The Changing Corporate Liquidity Management Ecosystem”.
The paper of the EBA’s working group on liquidity management looks in on the challenges that market players from both the demand- and supply- side are facing across Europe today.
These include evolving technical, operational and regulatory market requirements in general, and in particular the organisation of migrating liquidity management practices into the digital era.
The group said: “Appropriate liquidity management practices and risk mitigation measures are essential to this transformation for banks and corporates alike.”
The paper places a particular focus on analysing the effect of Basel III on two key elements of corporate liquidity management—the investment of corporate cash and the future availability of notional cash pooling.
Claus Richter, head of cash management solutions at Nordea and chairman of the EBA’s Liquidity Management Working Group, said: “The present paper is the result of a first analysis of trends and future developments in liquidity management, which our new working group launched into last autumn and completed this spring.”
He added: “In addition to the great input provided by our members from 18 different banks operating across single euro payments area (SEPA), we have had several touchpoints with corporate treasurers. They have validated and enriched many of our findings in joint panel discussions, which has proven extremely valuable for our paper.”
“We now look forward to opening up our discussions to the EBA Association’s technical provider constituency, which should help us to better understand technology requirements in the daily management of the asset cash by corporates.”
