Summary of Time for Rebalancing

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Time for Rebalancing summary
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Rating

8 Overall

8 Applicability

8 Innovation

7 Style


Recommendation

The upheaval in European financial markets since the sovereign debt crisis has reverberated far and wide, including in the offices and job descriptions of bank treasurers. In its biennial survey of major banks in Europe, the Boston Consulting Group finds that many of these banks’ treasurers are reporting to new bosses. Treasury jobs are changing, too, with balance-sheet responsibilities and liquidity management elbowing out traditional trading duties. getAbstract recommends this concise but informative report on the future of bank treasury to finance professionals.

In this summary, you will learn

  • How the roles of European bank treasurers are changing,
  • How new EU regulations will affect banks’ cost of senior unsecured debt and
  • What bank treasurers must do to ensure continued bank profitability.
 

About the Authors

Gerold Grasshoff, Pascal Vogt, Michael Widowitz and Carsten Wiegand are members of the Boston Consulting Group in Europe.

 

Summary

Since the sovereign debt crisis, the role of the bank treasurer in Europe has changed. No longer just an intermediary between the bank and financial markets, the treasurer’s job now includes managing risk and liquidity. According to a 2014 survey of 30 major banks operating in Europe, 82% of responding global bank treasurers now report to chief financial officers and assume “a steering role” that influences all bank divisions. Banks are stockpiling cash in case of future liquidity squeezes. Among global banks – those with assets of €500 billion or more – the typical cushion is 17% ...


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