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Liquidity Management 

Solutions for efficient management of your funds

A corporate treasurer's main challenge often revolves around ensuring that the company's cash resources are utilised to their maximum advantage. You need a partner bank that can help you:

  • Maximise interest income on surplus balances; minimise interest expense on deficit balances for domestic, regional and global accounts
  • Minimise FX conversion for cross-currency cash concentration
  • Customise liquidity management solutions for different entities in different countries
  • Centralise information management of consolidated account balances

Our Solution

With our global experience and on-the-ground market knowledge, Standard Chartered will help you define an overall cash management strategy which incorporates a liquidity management solution that best meets your needs.

Standard Chartered's liquidity management propositions

Issues:

Customer benefits:

  • Regulatory considerations
  • Tax implications
  • Single vs multiple entities
  • Single currency vs multiple currencies
  • Maximise float management
  • Minimise funding cost
  • Account balance information
  • MIS reports on inter-company settlements
  • Outsourcing

Contact us

Hiten Joshi
Hiten.Joshi@standardchartered.com

Physical sweeping

Subject to regulatory considerations, Standard Chartered offers both domestic and cross-border physical sweeps. To maximise yield on your daily cash, these solutions help you concentrate all surplus balances and deficit balances at a pre-defined period into one concentration account. Under a physical sweep structure, balances in multiple accounts are physically transferred from participating accounts to a designated concentration account.

Main features:

• Multiple-layer sweep;
• Standing instruction;
• 1-way sweep; 2-way sweep;
• Zero-balancing sweep; target balancing sweep;
• Debit sweep; credit sweep;
• Sweep with back value transactions;
• Comprehensive MIS reporting.

Notional pooling

If regulatory considerations permit, you can utilise Standard Chartered's Notional Pooling to help you maximise yield on your daily cash by offsetting accounts with deficit balances against accounts with surplus balances in different entities. You enjoy all the benefits and features of Physical Sweep, except that under Notional Pooling, there is no daily physical movement of balances from the participating entities to the designated cash concentration account.

Interest reallocation

Standard Chartered provides you with a flexible Interest Reallocation Programme whereby the interest component can be reallocated back to the participating entities from the designated cash concentration account based on your instruction. You get a detailed report, tracking the daily cash balance from each entity and the interest computation based on the interest reallocation formula that you have defined.

Investment

To help you maximise your surplus balances, make use of Standard Chartered's overnight investment instruments. With this, you can instruct excess balances to be invested to yield a return that is based on the overnight market driven rate. Alternatively, for longer term core balances, you have a choice of investing in short term 'AAA'credit rated Money Market funds.