Latest Centralisation Articles
Centralising group cash and liquidity was ranked as the top treasury priority for the next three years, when Nordea polled chief financial officers (CFOs) and group treasurers at 80 of Sweden’s largest enterprises. That’s a testament to the growing trend within large multinational companies of centralising the treasury function.
Treasury centralisation is experiencing continued strong growth, with London emerging as the preferred location for multinationals to base their regional or global treasury centres. At a November 17 briefing in the UK Capital, treasury and trade solutions executives from Citi outlined key global and Europe, Middle East and Africa (EMEA) region treasury trends.
Many multinational corporations are continually seeking to further centralise and optimise their treasury activities. Cash and liquidity management has often been the driver of this trend and with Europe’s implementation of the single euro payments (SEPA) there is a further impetus to centralise payments.
Mergers and acquisitions are opportunities to streamline treasury processes, get budget for new technology and demonstrate leadership. However, it is probably the risk of business failure that motivates treasurers most to implement best practices for global cash, liquidity and risk management in the combined company.