BankingCash & Working CapitalTechnology
October 20, 2020

Helping Treasury See Beneath the Payment Iceberg

TIS makes the case for treasury as gatekeeper of payment processes.Nearly half the members at a recent meeting of NeuGroup’s Global Cash and Banking Group (GCBG) said treasury at their companies is responsible for treasury payments only—not for, say, accounts payable (AP) or payroll. Just 15% of those surveyed said treasury completely owns payment processes and tools. Treasury Intelligence Solutions (TIS), sponsor of the meeting, made a case for making treasury the overall “gatekeeper” of all payment processes—with the help…
BankingTalking Shop
October 20, 2020

Talking Shop: For a Bank KYC Refresh, Do You Complete a Beneficial Ownership Form With SSN?

Member question: “One of our banks does a biannual KYC refresh and asks us to complete the US Client Certification of Beneficiary Ownership (a FinCEN form). “Is this something that your company also provides, and do you include Social Security number info?” Peer answer 1: “You do not need to provide SSN for a non-US person and you need to provide only one such person.” Peer answer 2: “We always put the parent US company as the UBO , and we would use…
BankingCapital MarketsESG
October 15, 2020

A Virgin Bond Deal, Community Investment and Frustration With Banks

Takeaways from the Tech20 High-Growth Treasurers’ Peer Group 2020 H2 meeting, sponsored by Bank of the West / BNP Paribas. By Joseph NeuWanted: A better bank user experience. The user interface (UI) and user experience (UX) is a key success driver for high-growth technology companies. So when their banks fail to deliver a quality UI/UX, growth tech treasurers get frustrated. Work from home, of course, has made what used to be digital nice-to-haves into must-haves. Electronic bank account management (eBAM) promises…
BankingCapital MarketsCOVID-19
October 8, 2020

Why Some Bankers May Root for a Democratic Sweep

Founder’s takeaways from the Bank Treasurers’ Peer Group’s first fall meeting. By Joseph NeuMembers of the BTPG have been meeting in the spring for 16 years running, and debuted their Fall Edition meeting this week, sponsored by Morgan Stanley. Here are a few takeaways I want to share. Banks have enough capital. The expectation is that US banks will pass the next two stress tests, even with with Covid-19 inspired stress scenarios, indicating everyone is well capitalized. This will free up buybacks and…
BankingCapital MarketsESG
October 6, 2020

A Green Bond Deal With Environmental and Social Benefits

Founder’s takeaways from the Treasurers’ Group of Mega-Caps 2020 H2 meeting. By Joseph Neu A green bond that moves the needle on E&S. One member shared insight from his company’s recent green bond offering that included a pair of African-American-owned investment banking firms among the four lead underwriters.   Not only is this member company breaking new ground with its second green bond, leveraging the experience and reporting infrastructure established with the first, but it is paving the way for further diversity firm involvement in this important issuance segment by…
October 1, 2020

Talking Shop: Exploring Minority Bank Deposits Amid Increased Public Interest

Question: “Minority bank deposits: Is your organization active or exploring given increased public interest?”  “I’m looking to connect with those with experience in this area and discuss best practices. In addition, I’m looking to identify contacts at any recommend .” The member included a link to a Fortune article, which discusses Black-owned financial institutions amplifying the call for racial justice by drawing more private capital into their communities.  Peer Answer: “Hi, we are close to finalizing agreement/structure with a start-up (CNote) which…
BankingCapital MarketsTalking Shop
September 29, 2020

Talking Shop: Taking the Temperature of Today’s Credit Facilities Market

Member question: “Is anyone extending their credit facilities in this current market? Specifically, facilities with tenors of 3 or 5 years.”Peer answer 1: “In early Sept., we closed the renewal of a 364-day facility. Given the large size of our overall facility, planning and lender discussion start months ahead of the renewal. At the time we kicked that project off, markets weren’t supportive of longer-dated renewals (none had occurred for jumbo facilities like ours). Good luck with your renewal!”Peer answer…
BankingCapital Markets
September 29, 2020

The Revolving Credit Dance: Banks Step Out Cautiously

Bank capital challenges and economic recovery are calling the tune on revolver tenors, pricing.The bank loan market is back in action, but even strong, investment-grade (IG) companies may want to step lightly since lenders still face challenges.  Bankers explained in a recent NeuGroup meeting that during the onset of the pandemic, banks’ internal credit ratings for clients often fell further than public rating agencies’, requiring lenders to set aside more capital and potentially shore it up by raising equity or…
BankingFXTalking Shop
September 24, 2020

Talking Shop: Methods for Pulling Cross Rates From Central Bank Published Rates

Question: How does your company pull cross rates that are required to be pulled from central banks’ published rates?  “Looking for some teams to benchmark on how you all pull the cross rates that are legally required to be pulled from central bank published rates. Pulling these rates from central banks’ websites is inefficient and we wanted to know how others are doing this.”  Peer Answer 1: “We use Bloomberg’s data license program to get the rates via a file and upload them automatically to our enterprise…
September 22, 2020

Reality Check: Banks Dial Back PPP Loan Forgiveness Expectations

Delays in applications and action by Congress will affect banks’ NIM and NII forecasts.Forget about forgiveness until early 2021. That, in a nutshell, was among the takeaways from a recent conversation between members of NeuGroup’s Bank Treasurers’ Peer Group. The forgiveness at issue is for loans that banks made under the federal government’s $669 billion Paycheck Protection Program (PPP), part of the CARES Act enacted to help small businesses struggling during the pandemic.The loans can be forgiven if companies used…