Treasury management

Treasury management (also known as treasury operations) is the process of overseeing a company's financial assets in order to better control its liquidity and reduce operational, financial, and brand risk. The operations of a company's treasury management department include the collecting, distribution, concentration, investment, and financing of funds. Financial risk management may also be a part of it in bigger companies.

In most banks, treasury management and customer assistance are handled by separate divisions. In the current economic climate, smaller banks are stepping up their treasury management efforts due to several factors: the availability of seasoned treasury management professionals, the availability of industry standard products and services from third-party technology providers tailored to the needs of smaller cli Treasury management may be carried out in-house using a variety of TMSs, some of which are free to use.

Treasury management and cash management are often used interchangeably by non-banking organisations, despite the fact that treasury management has a broader reach (and includes funding and investment activities mentioned above). The day-to-day management of a company's treasury operations is often handled by the organization's treasury staff, controller, or comptroller, who report to the CFO, Vice President / Director of Finance, or Treasurer.

Treasury functions may also include an asset liability management (ALM) desk that handles interest rate mismatch and liquidity risk; and a funds transfer pricing or pooling function that prices liquidity for business lines (asset sales teams) inside the bank.

Treasury Management product pricing may or may not be made public by banks.