Treasury Management for Building Societies, (Two Days)
This workshop is about building society treasury management. It explains the key terms, the role of treasury, the products used, the regulatory climate (including PS09/16, Strengthening Liquidity and PS10/5, the new sourcebook), the risks, risk management and governance.
You do not need prior knowledge, the explanations are straight forward and include practical exercises. The course is suitable for anyone who needs to know more about treasury. This includes NEDs, senior managers, those in operations, finance and audit and those who are new to dealing and risk.
Below is a summary of the workshop content. Each day has been placed in a logical sequence and addresses the things you need to know.
26th February 2011
1st August 2009
The general thrust of the CP is that Societies must prove that they have both the management and the systems capable of effectively dealing with the risks they face. This is part of the enhanced supervisory approach now adopted by the FSA. It states that systems and controls must match the level of complexity in a firm's business model. The FSA will adopt a more interventionist approach in order to ensure this is the case. The proposal is that building societies and the regulator will determine whether the risk management policies adopted are appropriate. Where they are not the Society can either simplify its business or improve its risk management. The FSA also intends to limit societies diversifying their business without a full assessment of capital adequacy. The FSA has considered applying similar CP 17 guidance to the banking sector but has decided on account of the "lack of homogeneity" that this would not be practical and in their case a firm-by-firm approach is more appropriate. The CP addresses treasury and lending. It contains five approaches to treasury management, three areas of treasury guidance and three approaches to lending. Consultation closes on 5th September 2009 with implementation due in early 2010 when a new Building Societies Sourcebook (BSOCS) will replace IPRU-BSOC.
6th August 2010
In the current environment building societies are finding it difficult to keep up with the changes that are affecting them. One area that causes concern is treasury. That's because it's a specialist area and regulation has become much more intrusive. A common difficulty faced by societies when dealing with treasury risk is the limited expertise that is available. This is where consulting can help you. It has a number of advantages:
9th January 2011
Getting a fresh look at your treasury can give you a new perspective on the risks you are running and the things that you need to tighten up on. Why wait for the regulator? Here's one client's experience.
The firm identified that counterparty credit exposures on OTC derivatives was adversely affecting the ability to trade. It was agreed that collateral management was a solution. But the firm did not want to invest in a collateral management system and have all the operational support issues.