What Is the Function of a Bank’s Treasury?

The main function of a bank’s treasury is to control and manage the bank’s money as well as to make sure that capital and liquid assets are available to all parts of the bank. The treasury also liaises with the bank’s regulating bodies. The regulators set the rules about capital and liquidity that banks must adhere to.

The treasury’s job regarding the access of assets ensures that the banking institution is financially secure and stable so that it can function and help its clients effectively. The liquidity and capital requirements of banks around the world have become an important factor within the economy, and the treasury has an important role to play ensuring that banks can withstand future problems and issues within the banking sector.

For international banks, the treasury must spread across the globe to follow the rules in each region. A treasury also converses with people across the bank’s network to help them understand the implications that trades have on the bank’s capital, the costs of funding different departments and banking regulations. In effect, they are a route of advice for many of the bank’s departments and also for clients looking to invest in the bank’s portfolio.