Treasury
Ensuring Liquidity and Financial Stability
Treasury’s Approach to Liquidity and Risk
Ensuring the bank's liquidity
The Treasury’s mission is to manage the bank’s liquid assets in order to cover the bank’s short-term commitments in arrears.
Treasury manages funds and financial flows, ensuring an optimal balance between cash on hand, which the branches use to serve customers, funds held with correspondents and at the central bank, and funds invested.
Based on the agencies’ costs, risks and needs, it sets the ceilings (operational limits) for the agencies’ cash balances.
Managing foreign exchange and interest rate risk
The Treasury Department intervenes directly on the interbank market to lend or borrow cash. It also intervenes on the foreign exchange market to open or hedge foreign exchange positions.Â
It organizes the quotations of the product segments that require the rate (exchange rate, deposit rate), depending on market trends, and sets the limits of the agencies’ foreign exchange positions. It also monitors the regulatory provisions for the supervision of the foreign exchange position.
Optimizing the investment of cash surpluses
In the event of a liquidity surplus, the Treasury Department invests these surpluses to increase the net interest margin. In a deficit situation, it resorts to financing while trying to minimize its cost and volume.