HSBC has launched its Global Liquidity Solutions (GLS) offering in Australia and Japan. The solutions are designed to optimise treasurers’ use of cash globally.
Tom Schickler, global head of liquidity for HSBC’s global payments and cash management business, said: “Corporates are trying to self-fund wherever possible given concerns about market liquidity and expectations around increasing costs of bank borrowing due to regulatory changes. The trend has accelerated in the last 18 months, while large multinationals have used pooling for several years, middle-market companies are now starting to adopt these structures.”
Companies’ ability to effectively manage cash has made treasury functions a key strategic component of organisations of all sizes. While banks have offered notional pooling and cross-border sweeps for many years, deploying GLS in Australia is significant. Historically, companies have tended to segment their liquidity management regionally or in major currencies; however Schickler remarked: “We’re seeing a distinct shift towards clients managing liquidity from a single, global position. With the roll-out of GLS to Australia and Japan, HSBC broadens the number of financial centres that clients can use as their international cash pooling locations, and have access to the full portfolio of products, single or multi-currency, physical or notional, domestic or cross-border.”
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