Basel II is a revised version of the 1988 Capital Accord, written by the Basel Committee on Banking Supervision(BCBS). Its formal title is the International Convergence of Capital Measurement and Capital Standards:A Revised Framework.
Basel II aims to produce greater consistency in the way banks and their regulars approach cross-border risk management. One of its main […]

As group treasurer, you need to enable your cash in all your various banks to generate interest. Very often, you are being approach by banker(s) to do cash pooling or concentration of balances.
This articles look at what’s are cash pooling- its advantages and it basic mechanism.
Cash pooling is simply a banking structure where balances on […]

Bankers when offering banking facilities would prefer that the company provide certain security/collaterized  assets
However, in the event of an UNSECURED commercial loan, we will often then see a Negative Pledge Covenant letter being issued. So what is this negative pledge clause letter and what are its purposes?
Firstly, a negative pledge is a provision in a contract which prohibits a […]

One of the role of Treasury is to ensure the right quantum of cash/liquidity to hold. So what really is the right quantum of cash to hold? The obvious answer would simply be the amount needed to pay today’s debt which is aided by deploying advanced technology like money wires, electronic wire transfer/computerization to pay […]

There is a very familiar term often heard which is ” guarantor”
Extracted from www.bankinginfo.com.my are interesting salient points noted on this topic on guarantor:
(a) What really is a guarantee:

it is a legal contract that binds you to pay the debt of the borrower if the borrower fails to do so. The financial instituation can sue […]