Goldman Sachs Bank Europe SE, Transaction Banking

1990

Corporate treasurers

Optimizing performance of in-house banks and regional treasury centers with multicurrency accounts

Treasury Operations

• Global businesses run multiple currency setups, layered with complexity, including managing corporate licensed cashflows and funding needs. • Streamlined solutions can optimize corporate funding needs while meeting regulatory requirements. • Treasury centers can leverage interbank channels and real-time book movements to centralize liquidity across all in-house bank/central entity accounts and their participating operating entities. • The transition towards a centralized funding center is accomplished by adopting sophisticated liquidity management tools, like notional pooling, delivering the ability to move forward without covering short positions across currencies.

• Global funding centralization and complex intercompany arrangements benefit from virtual accounts to track and manage liquidity. Use of virtual accounts is increasingly prominent for Treasury teams as they look to use ledger adjustments across operating entities instead of relying primarily on physical settlement flows. • Virtual accounts deliver detailed reporting, updating intercompany positions of the Opcos into Treasury ERP and TMS. Additional data can be incorporated to capture non-virtual account settled activity, and form a global view. • Multicurrency accounts compliment multicurrency liquidity management with net settlement of flows across entities and books. Notional pooling facilitates interest optimization, reduced funding costs and allows for complimentary currency management with respect to existing hedging programs.

Virtual accounts are integrated via cloud based APIs

English

Anirudha Majumder, Global Liquidity Solutions; Lars Oltrogge, TxB Coverage Continental Europe