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Concerning bank licences, does especially the sales finance matter?
For this advantages can be provided. The corporation can buy itself into better financing
possibilities with an own bank. But also this is not a strategic component for the majority of
the industrial corporations. It is a solution for single cases only.
Do industrial corporations have a more relaxed view with regard to counterparty-risk in
the meantime?
No, there has to be a differentiation. The financial crisis has increased the significance of
counterparty-risks when it comes to dealing with banks. Since, the corporations are taking a
precise look at their banking partners, not only with regard to service quality and price, but
also strongly with regard to creditworthiness. The counterparty-risk still has an enormous
weight as in the high time of the financial crisis. The decision parameters regarding this have
not yet changed.
By which others subjects the treasurers are plagued?
First of all, there is the risk management necessitated by the fluctuations in the currency
market. Steering the currency risk is the main theme. As a matter of fact, the treasury is
generally trying to hedge away the risk from the operative value added chain by way of use of
the financial instruments, thereby increasing the capability to plan for the business operations.
With this, the treasurer becomes increasingly the strategic partner for the board of
management.
Strategic partner in what sense?
This has been caused by the financial crisis. Before that, the treasury was a part of steering the
corporation which simply had to function. It had to safeguard the ability to pay for each single
corporation of the group and for the entire corporation group. It was about sufficient financing
sources, the steering of risks and the execution of the payments. There was the attitude of
expecting: this has to be done, so please ensure!
And today?
Today, the treasury has moved closer to the steering of the corporation. Its advice is being
sought when it comes to strategic decisions and thereby, the treasury has a greater influence.
For instance?
Today, decisions concerning transactions are also considered by treasurer’s eyes view. When
business activities are shifted in the context of geography, then country risks have to be
evaluated. There is the question whether the liquidity can be parked there, whether the
corporation can freely use the cash-flow and which risks are arising in case of doing business
with banking-partners. For these considerations the treasury is in the frontline. These themes
are not seen as a just prevailing situation any longer. It is a matter of pulse beat of the
corporation, because liquidity must flow at any time. As a consequence, also liquidity-based
ratios are playing a major role.
IGTA eJournal | Summer 2015 | 23