gtnews Readers Have Improved Cash Forecasting Since the Crash

A large majority of respondents to a gtnews online poll held over the past fortnight say that they have improved cash flow forecasting in their corporate treasury since the banking crisis of 2008 and subsequent recession.

In response to the question “As another crunch looms on the horizon has cash forecasting in your company become better since the crash of 2008?”, 50 people agreed that yes it has improved, which is just as well as the eurozone crisis and slowing world economy threatens a re-run of 2008.

The fact that the European Central Bank (ECB) has just distributed more than €1 trillion to banks and financial institutions across the European continent shows the scale of the liquidity problems currently facing the financial system, with potentially disastrous consequences for those corporate treasurers who have not diversified their funding models since the original credit crunch in 2008.

Larger corporate treasury departments at multinational firms may be sitting on big cash reserves at the moment but the need to improve cash flow forecasting when tough times once again beckon is still paramount for them, just as it is for smaller firms who are not in such a fortunate position. It is therefore no surprise that corporate treasurers have improved their cash flow forecasting procedures since the crash of four years ago.

In the ‘no’ camp there were still 12 respondents to gtnews’ online straw poll who somewhat worryingly said that cash forecasting in their company had not improved since 2008, which does not bode well for any firm located in slowing European markets. There were six ‘don’t know’ responses to the poll, suggesting a certain level of ambivalence among some treasury respondents about how well they are prepared to ride out another downturn.

  • The gtnews online poll will become a regular feature on our homepage. This week’s question is: As Greece’s second bailout and its Private Sector Involvement (PSI) debt swap near completion, will the country still be in the eurozone at the end of the year?VOTE NOW and join the linkedin discussion groups on our open friends of gtnews forum and our treasury expert panel.


Related reading

New consumer banking head for Citi Asia Pacific