Over the last 3-5 years there has been growing recognition in corporate treasury departments that they needed to protect themselves from supplier risk of all kinds from TMS suppliers, connectivity suppliers, banks, etc. RBS’s exit from major parts of the transaction businesss was a clear illustration of how vulnerable corporates are to their banks.
There has been much anecdotal evidence of how corporates are increasing the number of cash management banks to cover the vulnerability to banks changing their commitment to the transaction banking business. Survey data is now emerging: a recent survey of Asian corporates by The Asset group showed that in 2015 the net number of banks used for cash management and trade finance increased significantly, see:
Source & Copyright©2016 - The Asset Group
CTMfile take: How are you protecting your department from bank supplier risk? As one corporate treasurer put it: “The cost of having backup bank suppliers in key markets and processes is much lower than having to replace the lead bank in a few months. In addition, it gives me peace of mind in my relationship with our CFO.”
Source: The Asset e-mail
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