Banking Treasury Management Course

Course Overview:

Banking Treasury Management course enables students to grasp treasury operations and cash flow management in any institution. The participants will learn about working capital optimization, cash and liquidity management in the economy, and cash flow projections for short and medium as well as long-term horizons.

The module includes investment products of treasury, risk coverage techniques and functional treasury policies and procedures. Their interrelations are based on the following keystones: asset and liability management, treasury management, short term credits, investments and derivatives markets.

Furthermore, the module addresses certain aspects related to evolved practices in the field of treasury such as treasury management systems (TMS), mobile banking and blockchain technology. 

A designed program for, finance professionals, corporate treasurers as well banking practitioners, this course seeks to improve the meanings of finance in their planning, understanding of risk, and strategies that work within the changing framework of the banking policies.

Course Objectives:

By the end of this Banking Treasury Management program course, you will be able to:

• Acquire an understanding of the fundamentals of effective management of cash flow, including the optimization of the level of working capital
• Describe and explain the roles of corporate treasury management and the treasury function
• Apply up-to-date practices covering cash management techniques
• Draft a cash flow forecast and establish cash and loan forecasted balances at specific dates
• Develop a practical understanding of treasury investment and products along with their risk and return
• Assess the effectiveness of treasury policies and procedures for the organization
• Implement technology related to treasury operations
• Develop practical experience of how to manage cash flow and optimize working capital to facilitate such delivery in real-life business situations
• Increase personal financial skill levels
• Identifying key risks relating to the treasury and their mitigation.
• Appreciating the bank regulatory environment.
• The importance of competition and innovation in treasury.
• Anticipating and preparing for the next financial crisis.
• Describe the various types of risks that arise in a bank’s treasury and the ways in which such risks can be managed.

Who Should Attend?

Treasury professionals, financial professionals, finance managers, corporate Banking, controllers, financial controllers, chief accountants, accounting managers, senior accountants, banking professionals, back-office managers, traders and dealers, financial regulators, and corporate business professionals.

Course Outlines:

Introduction to the Treasury Function

• Definition and responsibilities of the treasury function
• Treasury function as part of organizational structure
• Role of treasury professionals
• Strategic challenges for treasurers in organizations
• Risks surrounding the treasury function:
• Market risks: interest rate risk, FX risk, equity price risk, commodity price risk  
• Liquidity risk
• Credit risk
• Other risks
• Developing a risk heat map for treasury function

Cash and Liquidity Management

• Asset and liability management versus treasury management
• Reasons for holding cash: transaction, precautionary and speculative
• The optimum cash balance:
• Baumol’s model
• Miller-Orr model
• Managing and accelerating collections
• Managing and decelerating disbursements
• Ratio analysis for decision making
• Days sales outstanding versus credit term
• Days inventory on hand versus lead time
• Days of payables
• Cash conversion cycle

Cash Flow Forecasting

• Purpose of cash flow forecasting
• Issues and opportunities in cash flow forecasting
• Types of forecasts: purpose, horizon, frequency
• The forecasting process
• Data identification and organization
• Selection and validation of the forecasting method
• Forecasting methods
• Short-term cash flow forecasting method
• Medium and long-term forecasting
• Statistical methods in forecasting

Treasury Funding and Investing

• Managing short-term borrowing
• Short-term funding alternatives
• Long-term debt financing
• Short-term interest rates versus long-term interest rates
• Loan agreements and covenants
• Credit rating agencies
• Bonds as a tool for long-term investing and funding
• Managing short term investments
• Short-term investment policies
• Securities safekeeping and custody services
• Long-term equity investments and stocks
• Equity valuation techniques
• Derivatives markets and hedging

Treasury Policies and Procedures

• Procedures development and implementation
• Liquidity policy
• Bank accounts and financial services authority policy
• Payments policy
• Wire transfer policy
• Collection and concentration policy
• Payment cards policies
• Outsourcing policy
• Financial risk management policy
• Regulatory compliance policies
• Financing and funding policies
• Treasury systems policy
• Sample short-term investment policy

Technology in Treasury Operations

• Information security for treasury
• Information management technology platforms
• Technology management systems (TMS) functionalities
• Cash management
• Spreadsheets
• Payments
• Debt and investment transactions
• Main TMS vendor profiles
• Phases for TMS selection process
• Focus points to implement TMS
• E-commerce and treasury
• Basics of e-commerce
• Electronic Data Interchange (EDI)
• Electronic Bank Account Management (eBAM)
• Mobile banking and mobile payments
• Application program interfaces (APIs)
• Blockchain
• Treasury-related fraud

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