Regional Cash Centralisation Key to European Treasurers’ Strategy

The trend toward regional centralisation of cash balances is expected to grow over coming months, according to new research by BDRC on behalf of ABN AMRO’s Working Capital Business. The survey revealed that 66 per cent of corporate treasurers already concentrate cash balances with a single bank, while seven out of ten treasurers are interested in using multi-bank cash concentration services. Respondents believed they would benefit from enhanced operational efficiency, reduced workload and higher returns from larger cash balances as a result of using such services, according to the report. The research noted that Europe-wide centralisation of cash balances is now accepted best practice, with 48 per cent of respondents already centralising cash balances across the region and 61 per cent citing regional centralisation preferable to centralisation by country or operating subsidiary. The research found that the preferred technique for centralising cash is to physically concentrate (or sweep) balances to treasury accounts (80 per cent of respondents use cash concentration, with 61 per cent making use of automated sweeps). Sixty six per cent of respondents use a single bank to concentrate their balances.


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