China widens cash pooling access for multinational treasuries 

China has widened access to a cross-border cash pooling scheme nationwide, allowing more multinational treasury teams to manage renminbi and foreign currency funds centrally. The policy, jointly issued by the People’s Bank of China and the State Administration of Foreign Exchange, went live earlier this month. Participating groups can pool foreign debt and overseas lending quotas across member companies, determine how much funding to centralise and administer renminbi and foreign currency through the same account.

At group level, those provisions give treasury greater scope to allocate liquidity across entities while allowing member companies flexibility in their use of funds. A combined account for both currencies is also intended to reduce the operational separation between renminbi and foreign currency cash management.

Nationwide access follows a pilot launched in Beijing and Guangdong Province in 2023. More than 260 multinationals had registered by the end of June 2026, covering over 5,500 member companies in China and overseas.

Registration procedures will be simplified through a single-window mechanism at local branches of the foreign exchange regulator. Cooperating banks will also be permitted to process certain registration changes, shifting some administrative work away from the regulator.

Risk controls remain part of the framework. Operational requirements have been set for ongoing and retrospective supervision, aimed at guarding against risks arising from cross-border capital flows.

China now operates two cross-border cash management programmes for multinational companies. Its integrated renminbi and foreign currency cash pooling programme primarily serves large multinationals, combining higher entry thresholds with greater flexibility and higher transfer ceilings.

Larger groups therefore retain a route designed for more extensive cross-border liquidity movements. Officially called the centralised operation and management of cross-border RMB and foreign currency funds, the programme being taken nationwide targets a broader population of multinationals through lower entry thresholds and simpler procedures, although its transfer ceilings are lower.

Broader eligibility could bring centralised cross-border liquidity management within reach of companies previously unable to meet the requirements of the larger-group scheme. Treasurers assessing the programme will need to weigh easier access and consolidated control against its lower transfer limits, while establishing processes that satisfy the accompanying reporting and supervisory requirements.

 

Cash forecasting dominates as AI climbs treasury agenda

Cash and liquidity forecasting remains treasury departments’ leading priority and most difficult activity, even as AI and automation climb the agenda, according to research from the Association for Financial Professionals.

AFP’s 2026 Treasury Benchmarking Survey found that 63% of practitioners ranked forecasting as their top priority, while 49% identified it as treasury’s most challenging activity. Its continued prominence suggests that years of technology investment have yet to remove a persistent obstacle to liquidity planning.

AI and automation entered the five leading priorities, cited by 30% of respondents. Managing the opportunities and risks associated with AI was already a significant challenge for 38%, while 35% highlighted the use of AI to automate manual processes.

Rising attention places technology strategy alongside established work such as cash management and liquidity planning, making it part of treasury’s core agenda. AI and automation were particularly prominent priorities among larger organisations, the report found.

Governance appears to be lagging behind that increased attention. Respondents gave policies covering AI and emerging technology an effectiveness score of 2.9 out of five, the lowest of all areas assessed. Cash management policies scored 4.4, with bank relationship management close behind at 4.3.

Knowledge levels revealed a similar shortfall. Half of respondents regarded AI knowledge as important, but only 34% considered themselves effective in it, leaving a 16-percentage-point capability gap that could constrain adoption.

Established technical responsibilities nevertheless remain central to treasury work. Bank relationship management was used by 86% of practitioners and cash forecasting by 77%. Communication ranked between them at 78%, while collaboration and critical or strategic thinking were each relied upon by 75%.

Leadership produced the survey’s widest capability divide. Although 90% considered vision and future planning essential for treasury leaders, only 61% rated senior treasury professionals as effective in that area, creating a 29-percentage-point gap.

Tom Hunt, CTP, director of treasury practice at AFP, said: “Today’s treasury teams are expected to support technology transformation, provide strategic insight and manage increasing complexity, often within lean organisational structures. The survey findings reinforce that navigating this expanding scope will rely on combining technical expertise with strong communication, collaboration and leadership capabilities.”

Sponsored by PNC Bank, the report is based on 425 responses collected from treasury practitioners in May 2026. Participants represented organisations spanning different sizes, industries and ownership structures.

Across the results, treasury’s remit is expanding to include AI alongside established liquidity responsibilities. Weak policy effectiveness and limited knowledge may slow implementation, while the leadership findings point to a need for stronger long-term planning. Finance functions adopting AI must therefore develop governance and staff capabilities without losing focus on the forecasting problems that continue to shape daily cash and liquidity decisions.

 

Fed hikes as BofE holds amid inflation risks

US and UK monetary policy moved in different directions as the Federal Reserve raised rates by 25 basis points and the Bank of England held steady, although both maintained a hawkish stance amid elevated inflation and geopolitical uncertainty.

Fed policymakers voted 12-0 to lift the federal funds target range to 3.75% to 4%. The FOMC said economic activity was expanding solidly, supported by resilient domestic spending, strong productivity and robust capital investment. Job gains had kept pace with workforce growth and unemployment had changed little.

September’s Summary of Economic Projections strengthened the higher-for-longer signal. Officials lifted their median end-2026 policy-rate projection from 3.8% in June to 4.1%, consistent with one further quarter-point increase after this meeting. That median remains at 4.1% for 2027, before declining to 3.9% in 2028 and 3.6% in 2029.

Economic forecasts combined stronger activity with persistent price pressure. Median GDP growth projections rose to 2.3% for 2026 and 2.4% for 2027, each 0.1 percentage point above June. Unemployment was lowered from 4.3% to 4.1% for both years. The 2026 headline PCE inflation projection rose to 3.7% from 3.6%, with core PCE rising to 3.4% from 3.3%.

All 18 participants judged uncertainty around headline PCE inflation to be higher than normal and its risks tilted to the upside. Median headline inflation is projected to fall to 2.3% in 2027 and reach 2% in 2029.

In the UK, the MPC voted 6-3 to retain its 3.75% Bank Rate, with three members favouring an increase to 4%. CPI inflation reached 3.1% in August and is expected to rise further as protracted conflict in the Middle East pushes crude and refined energy prices higher.

Policymakers found little evidence of material second-round effects in wages and prices, although they warned that the risk grows the longer elevated energy costs persist. Slightly stronger activity was offset by a soft labour market and higher borrowing costs.

MPC members separately voted unanimously to reduce the Bank’s government bond holdings to zero by the end of 2034. Remaining gilts will be unwound at an annual average pace of £46bn through £20bn of sales each year alongside maturities.

Neil Wilson, investor strategist at Saxo UK, said: “The hurdle for another rate hike remains high, which means markets still appear to be pricing too much tightening risk and too little probability that the next move is ultimately lower rather than higher.”

Divergent decisions leave US borrowing costs on a higher projected path while UK policy remains on hold but divided. Corporate funding, cash investment and FX hedging decisions will remain exposed to incoming inflation data and the duration of the energy shock.

 

UK reporting overhaul puts dividends and sustainability in focus

UK companies could be allowed to determine whether dividends are lawful through a solvency test, under wide-ranging government proposals to simplify corporate reporting and reduce prescriptive sustainability disclosures. Published by the Department for Business, Innovation, Science and Trade, ‘Modernising Corporate Reporting to support long-term economic growth’ proposes changes spanning financial statements, strategic reports, audit exemptions and digital filing. The 12-week exercise closes on 30 November 2026 and its proposals may apply across the UK.

Dividend reform would replace calculations based on accumulated realised profits and losses with a statement that a distribution will not affect the company’s ability to continue as a going concern. Described as a fundamental Companies Act change, the proposal would place greater weight on liquidity forecasts and treasury’s assessment of future obligations before cash is returned to shareholders.

Strategic reports would move to five principles-based disclosures covering the business model, performance, resources and relationships, strategy and principal risks. Most existing requirements would be removed, with financially material information serving investors and creditors as the organising principle.

Prescriptive disclosures on environmental, employee, social, community, human rights and anti-bribery matters would cease to be standalone legal requirements. Companies would still be expected to report these issues when financially material. Explicit requirements for KPIs and future trends could also disappear, although material metrics should feature across the five baseline areas.

Existing climate-related financial disclosures are excluded from that proposed repeal and remain subject to a separate review due by spring 2027. Streamlined energy and carbon reporting would continue, with companies choosing its position within the first half of the annual report. Supplier payment performance reporting would receive the same treatment.

No mandatory assurance of future UK Sustainability Reporting Standards disclosures is planned at this stage. Companies could instead choose the extent of external assurance, while potentially disclosing whether it was independent, which standards were applied and whether assurance was limited or reasonable.

Medium-sized companies could gain the reporting and audit exemptions currently available to small companies. An SME accounting standard would remove the cash flow statement requirement, exempt SME groups from consolidated accounts and potentially extend audit exemption to all SMEs. The government acknowledges that losing audited accounts could affect access to credit or its cost and is considering a lower-cost voluntary assurance standard for lenders.

Group structures may also face fewer entity-level obligations. Ministers are considering removing the parent guarantee attached to the audit exemption for wholly-owned subsidiaries and moving corporate governance reporting from individual companies to group level.

Digital proposals include greater iXBRL tagging, director approval of electronic formatting before reports reach shareholders and an auditor report on whether formatting requirements were met. Some disclosures could move to websites or central portals, while electronic shareholder communications would become the default.

Very large companies could face specific cyber risk disclosures covering governance, government guidance and incident-response plans. A single threshold is also being considered for non-financial reporting, although its level has not been set. Finance teams would therefore see fewer fixed reporting fields in several areas, alongside greater judgement over solvency, materiality, assurance and the information creditors need.

 

ECB recruits online merchants for digital euro pilot

The Eurosystem has opened applications from e-commerce and mobile-commerce merchants operating in the euro area to join its 12-month digital euro pilot, scheduled to begin in the second half of 2027. The European Central Bank’s call for expressions of interest follows the selection of payment service providers for the programme. It specifically targets e-commerce and mobile commerce businesses able to test remote payment journeys under realistic conditions.

Scheduled to begin in the second half of 2027, the pilot will use a beta version of the digital euro in a controlled payments environment. Its functionality and technical design will be close to those envisaged under draft EU legislation, although the beta currency will not have legal tender status.

Selected merchants will act as business end users, accepting simulated digital euro payments and examining how the instrument could fit into existing checkout and payment processes. Testing will cover technical functionality, operational procedures and the customer experience.

Feedback will be sought on integration requirements, merchant needs and user payment journeys. Findings are intended to inform the digital euro’s technical specifications and future design decisions as the Eurosystem continues its preparations.

Participation is voluntary and will not be remunerated. Each selected merchant must enter into a participation agreement with the ECB and establish or adapt its contractual relationship with an acquiring payment service provider involved in the pilot.

Applications will be assessed against eligibility requirements and weighted criteria covering market reach, operational readiness and suitability to support testing. Merchants have until 17:00 CET on 27 October 2026 to apply.

An ECB information session on 6 October will outline the pilot and application process.

Eurosystem staff and merchants at central bank premises will also participate, while national central banks may recruit additional local businesses.

No decision has been made to issue a digital euro. A final determination will follow the adoption of relevant EU legislation, with the Eurosystem saying its preparatory work will remain aligned with that process.

Merchant involvement gives the ECB a way to test how a potential digital euro would operate beyond its technical infrastructure. Checkout integration, acquiring arrangements and user behaviour will help determine whether the proposed payment method can function effectively in remote commerce.

 

Hong Kong businesses upbeat but seek investment support

Hong Kong businesses are broadly optimistic about the next 12 to 18 months, but want tax incentives, financial support and clearer policy direction to convert confidence into corporate investment. A survey by DBS Hong Kong found 63% of business owners and senior decision-makers felt positive or very positive about the outlook. Longer-term strategies nevertheless reflect a balance between expansion and cost control.

Product or service innovation was the leading priority for the next three to five years, selected by 53% of respondents. Cost optimisation and efficiency followed at 46%, while 31% identified improvements to customer experience.

Policy measures ranked highly among the conditions businesses believe would support expansion. Tax incentives and financial support were considered the most effective measures by 49%, ahead of promoting cross-border trade and investment at 40%. Support for innovation and technology attracted 35%, with simpler regulatory processes and approvals cited by 32%.

Hong Kong’s forthcoming first Five-Year Plan also brought the Northern Metropolis into focus. Direct cross-border collaboration and access to mainland China represented its leading opportunity for 30% of respondents, narrowly ahead of investment opportunities at 29%. A further 23% anticipated business growth from rising demand for products and services.

Participation may depend on greater clarity and practical incentives. Financial incentives were the most commonly requested measure for encouraging business involvement in the development, cited by 36%. Facilitating cross-border resource flows followed at 28%, while 22% wanted clearer long-term plans and policies.

AI adoption revealed a pronounced divide by company size. Nearly two-thirds of large and mid-sized companies, 62%, had fully or partly integrated AI and digital technologies into their operations, compared with 38% of SMEs.

Businesses primarily used these technologies to improve product or service quality, cited by 49%, and streamline operations and reduce costs, at 48%. Automating routine tasks was reported by 36%.

Skills shortages and concerns about data security and privacy were the joint leading obstacles to further adoption, each affecting 37%. High implementation and maintenance costs followed at 35%, while 34% reported difficulty integrating technologies with existing systems.

DBS Hong Kong conducted the research between 6 August and 7 September 2026, receiving responses from 250 Hong Kong-based business owners and senior decision-makers across SMEs and large and mid-sized companies.

 

Canada’s sustainable bond issuance down 30% in 2025

Canadian sustainable bond issuance fell by roughly 30% in 2025, reversing part of 2024’s record rebound as activity remained concentrated among a small group of borrowers. Total issuance reached US$17.47bn across 36 transactions, according to The Canadian Sustainable Bond Market Report: Third Edition. It was published by the Institute for Sustainable Finance, housed at the Smith School of Business at Queen’s University in Ontario, Canada.

Canada’s share of global issuance declined even as the international market remained broadly stable. Green bonds continued to dominate, accounting for approximately 86% of the national total.

No sustainability-linked bonds were issued during the year, while Canada has yet to record a clearly labelled transition bond. Budget 2025 nevertheless signalled that the federal government intends to explore a sovereign framework encompassing both green and transition bonds.

Concentration extended beyond bond types. Just 21 issuers completed the 36 deals and only one borrower entered the market for the first time. Public-sector borrowers, led by regional governments and the Government of Canada, accounted for a large share by value.

Indigenous-led transactions provided a notable source of diversification. The First Nations Finance Authority completed two sustainability bonds, while the year also brought the first labelled Indigenous bond from a North American bank.

Use of proceeds remained focused on climate mitigation. Clean energy, clean transportation and green buildings received close to 80% of disclosed allocations. Climate adaptation attracted approximately 1%, continuing a shortfall identified across all three editions of the report.

Researchers proposed four priority actions to broaden participation and support a recovery in issuance. Continued development of voluntary climate investment guidelines, or a taxonomy, would give issuers and investors a clearer basis for identifying credible green and transition assets.

A centralised public GSS+ bond database could combine issuance data, post-issuance reporting and alignment with the forthcoming taxonomy. Improved issuer and investor education would target smaller municipalities, Indigenous organisations and small and mid-sized companies.

Federal subsidies were also recommended to offset upfront costs for smaller and first-time issuers, drawing on schemes used in Japan and Singapore. Researchers said the measures could diversify the borrower base and address data and capacity gaps as macroeconomic conditions stabilise.

 

European companies approve €100bn through BofA mobile app

Mobile devices are becoming a routine channel for time-sensitive treasury controls, with European finance teams increasingly using them to review and approve payments away from the office. During the first seven months of 2026, transaction volumes through Bank of America’s CashPro App rose 25% across Europe, while payment value increased 21% to more than €100bn.

Authentication behaviour has shifted alongside payment activity. Some 74% of European CashPro users now select the app’s mobile token as their preferred method of accessing the platform.

Bank of America’s mobile token replaces a separate physical security device and works with biometric verification, QR sign-in and push authentication. Combining access and approval tools on the same device allows authorised employees to review transactions without returning to a desktop workflow.

Kunwarjit Singh Suri, EMEA controller at F5 Limited and a member of the bank’s UK CashPro Board, said: “Moving from a physical token to the CashPro App was a natural step for us. It gives us the security we need while making it easier to review and approve transactions wherever we are. The new payment approval process is another nice touch making it easier for us to review and approve payments.”

Client feedback gathered through CashPro Boards has also informed changes to the payment approval process. Bank of America said the revised experience provides users with greater visibility of payment details during review.

Further development will add mobile identity verification for corporate administrators, building on the app’s existing authentication controls.

Rising mobile approval volumes also affect treasury control design. Policies and access controls increasingly need to accommodate employees authorising payments from different locations while preserving authentication security and visibility into payment details.

 

UK-France machinery deal uses fully digital letter of credit

A machinery purchase between UK manufacturer Board24 and French equipment supplier BOBST Lyon-France has been supported by a letter of credit handled entirely through digital documentation. Lloyds issued the LC on behalf of Board24, with Societe Generale confirming it in favour of BOBST. Completed on 8 June, the transaction financed the purchase of an Expert machine and several related pieces of equipment.

Societe Generale described the deal as one of the first fully digital letters of credit between the UK and France. Its completion in a live commercial transaction marks a further move away from pilots in a trade finance market that still relies heavily on transferable paper documents.

Enigio provided the underlying document technology. Its trace:original system creates digital originals that can be transferred between participants while recording control, signatories and successive holders and preserving document integrity. It can support instruments including LCs and electronic bills of lading without requiring paper originals.

Use of electronic documents removed the need to transfer physical originals among the buyer, supplier and banks. Digital handling is intended to shorten processing times, improve end-to-end traceability and reduce operational risks associated with physical documents.

Nadine Thevenoux, trade finance specialist at BOBST Lyon-France, said: “Managing a fully digital letter of credit requires close coordination and trust between the corporate parties, the banks and the technology provider.”

Such coordination also depends on legal recognition of electronic records. Negotiable instruments have historically required possession of physical originals to transfer the rights they represent. Adoption of provisions based on the Model Law on Electronic Transferable Records has established equivalence between paper and electronic transferable documents in jurisdictions including France and the UK.

James Taylor, finance director at Board24, said: “The process demonstrated how strong collaboration, clear communication and the right technology can simplify traditional trade flows while maintaining the security, control and confidence required for international trade.”

Broader adoption will depend on continued development of national regulatory frameworks and greater interoperability between digital platforms. Extending digital documentation across commercial contracts, financing and goods delivery could reduce breaks between different stages of a transaction, but requires banks, corporates and technology providers to coordinate their processes and controls.

 

Finqware adds Visa payments and FX to treasury platform

Finqware is adding cross-border payments and foreign exchange capabilities from Currencycloud, a Visa Direct offering, to its treasury platform for European businesses. The integration will underpin an FX Hub within FinqTreasury, allowing mid-sized and large companies to collect, hold, convert and send funds domestically and internationally without moving into a separate payment or FX system.

Corporate finance teams commonly use several banking portals, payment platforms and currency providers to manage international transactions. Bringing those functions into the treasury environment is intended to reduce the number of systems involved in executing payments and managing currency positions.

FinqTreasury already supports multi-bank liquidity management and domestic and cross-border payments. Currencycloud’s capabilities will place FX execution alongside account information, payment initiation and existing treasury processes.

Users will be able to oversee liquidity and initiate transactions through the same workflow, giving finance teams a consolidated view of how funds move across their organisations. Finqware said the arrangement should also reduce manual movement between separate banking and payment interfaces.

Currency collection and holding capabilities may be particularly relevant for companies receiving income or maintaining balances in several markets. Conversions and onward payments can then be managed within the platform rather than through standalone provider channels.

Embedding the service extends Finqware’s focus beyond domestic multi-bank operations into international money movement. Currencycloud provides the underlying cross-border payment and FX functions as a Visa Direct offering, while Finqware incorporates them into its treasury interface.

Closer links between liquidity information, FX conversion and payment execution could help treasury teams manage the operational steps surrounding cross-border flows.

 

I&M Bank taps Surecomp for regional trade finance rollout

I&M Bank will introduce a digital trade finance platform across five African markets through a partnership with technology provider Surecomp. The rollout will begin in Kenya before extending to the bank’s operations in Tanzania, Rwanda and Uganda, as well as Bank One in Mauritius, part of I&M Group.

Surecomp’s DOKA-NG and RIVO systems will be deployed to bring different stages of trade finance processing into a more integrated environment. I&M Bank expects the platform to reduce its reliance on manual procedures and paper documentation, while shortening transaction turnaround times.

Operational changes will also cover risk and compliance processes. A common technology platform across the regional network is intended to give customers a more consistent service and help the bank process higher trade volumes as businesses expand across markets.

Carolyne Mulandi, head of trade and financial institutions at I&M Bank, said: “This investment is about simplifying that experience, reducing turnaround times and giving our customers a stronger trade finance partner across the region.”

Regional implementation gives I&M Bank a way to standardise parts of its trade finance operation while retaining delivery through its individual country businesses. Customers trading across several of the bank’s markets could encounter fewer differences in how transactions are submitted and processed.

Digitising the underlying workflow may also reduce the movement of information between separate systems and provide a clearer operational record for compliance checks. Surecomp’s technology will support transaction processing across the platform, with the two companies describing the project as part of a wider modernisation of I&M Bank’s trade services.

 

Amex launches business savings account 

American Express has launched a business savings account offering a 2.95% annual percentage yield, with no minimum balance requirement or monthly maintenance fee. Available through American Express National Bank, an FDIC member, the account is aimed at businesses seeking a return on cash that is not required for immediate operational needs. The advertised APY was accurate on 15 September 2026 and can change before or after an account is opened.

Customers can make and receive ACH and wire transfers online or through the Amex app, as well as deposit cheques, without an additional charge. Same-day ACH transfers cost US$10 and are subject to submission deadlines and restrictions.

Transfers between the savings account and an American Express Business Checking account can be completed instantly without a fee. Accounting software connections and links to other banks are also available, allowing balances and transactions to feed into companies’ wider financial records.

Businesses can apply for checking, savings or both products through a single application. The accounts will sit within Amex Business Banking and can be managed online or through the app alongside the company’s card products.

An American Express Trendex survey found 82% of small business financial decision-makers believed their organisation’s excess cash could be put to better use in a savings account. The online poll covered 1,165 respondents between 30 July and 4 August 2026 and had a margin of error of three percentage points.

The account gives businesses another option for separating surplus liquidity from transactional cash while keeping funds accessible through electronic transfers.