This will see them progress on the path towards centralisation in 2015, leveraging, for example, their recent implementation of the SEPA regulation. With SEPA, single account solutions – which use Payments-On-Behalf-Of and Collections-On-Behalf-Of structures through an in-house bank – have gone from theory or small scale to become the new best practice in European cash management.
US blue chips are also cash rich, and their treasurers are approaching their banks for yield and, more importantly, to protect their cash so they can use it to invest appropriately – whether for their European operations or elsewhere.
However, Basel III’s Liquidity Coverage Ratio (LCR), which takes effect in 2015, means that corporates will have to hold their non-operational cash with banks for at least 30 days to ensure yield.
Deposit “stickiness” will therefore become more formally defined, and new account types will reflect the LCR requirement. For instance, “notice accounts” are likely to set an important precedent, introducing a stricter trade-off between liquidity and yield.
Banks are already advising their clients on how to navigate and benefit from all the regulation that has come into effect, and this will continue into 2015. And the same goes for US corporates operating in Europe.
A series of governments are now very worried about the idea of bitcoin and these currencies because customers would be able to make sustainable ongoing transactions and payments without having to ever introduce the use of a typical financial model or banking system. To combat this potential threat, several countries including major central banks like the Bank of England and the Bank of Israel will be launching their own version of a cryptocurrency. This could bring big advantages to customers.
Inthe UK’s recent Autumn Budget, Chancellor Phillip Hammond vouched for a plan to build a British economy that is “fit for the ... read more
The new EU General Data Protection Regulation of the European Union will have a wide impact on how data of EU citizens can be stored – and business are well advised to not take it lightly.
New Thomson Reuters research into Know Your Customer (KYC) related challenges impacting financial institutions (FIs) and their corporate clients reveals that many of the issues raised by the company's 2016 survey remain.