International Treasurer: Latest Intelligence

Regulatory Watch: Fitch: Basel 3 Means ROE Hit for Banks

Thu, 17 May 2012 21:50:22 GMT

Fitch report shows Basel 3 capital requirements will reduce banks’ return on equity by 20 percent.

Big banks stashing buffer bucks to satisfy Basel 3 rules will see their return on equity diminished. That’s the conclusion of a Fitch report that said 29 of the world’s largest banks – global systemically important financial institutions or G-SIFIs – might need to raise about $566 billion in common equity in order to meet Basel 3 capital requirements. This would translate into about 20 percent cut on their returns.

Developing Issues: ERM Programs; Manager Scorecards; Tax Reform

Wed, 16 May 2012 22:25:57 GMT

A look at what’s on International Treasurer’s radar screen.

Several topics came out of International Treasurer’s weekly editorial meeting, including what goes into a mature enterprise risk management (ERM) program, creating an external cash manager scorecard and an update on what's happening on the corporate tax reform front.

Peer Groups: LatAm Treasury Managers Eye Argentina, Brazil Risks

Tue, 15 May 2012 19:52:55 GMT

LATMPG members settle on agenda topics for upcoming June meeting.

Argentina, tightening FX controls and how to manage the associated FX risk therein are top of mind for members of The NeuGroup’s LatAm Treasury Managers’ Peer Group as they gear up for their spring 2012 meeting.

Risk Management: Using Many Tools to Measure Counterparty Risk

Mon, 14 May 2012 20:52:46 GMT

Members of The NeuGroup’s T30-2 measure counterparty risk in a number ways.

A least a few companies’ major bank counterparty made big news recently with a more than $2bn trading loss. But while that bank’s, (OK, JPMorgan’s), trading losses are big, they’re likely not enough to put it out of business – it reportedly has a $360bn derivative trading portfolio that has earned billions over the years. So the ISDAs et al likely haven’t changed all that much. Still… anything can happen, so it’s always prudent to check on all the methods used to check on what risks the company’s counterparties present.

Regional Treasury: Treasurers Face Investment Challenges in Asia

Fri, 11 May 2012 19:46:25 GMT

Managing excess liquidity in Asia can be a challenge but companies and banks are starting to rise to the occasion.

Finding ways to improve investment of excess liquidity as well as access to excess liquidity is always challenges in Asia. This is mainly because growth and opportunities are outpacing the facilities to support them. This was the topic of one session at The NeuGroup’s recent Asia Treasurers’ Peer Group in April. One of the key issues is that as balances in Asia accumulate, more members see their firms recognizing the need to do something.