From the May 2014 Special Report issue of Treasury & Risk magazine

Basel III Reshapes Banks’ Relationships with Corporate Treasury

New regulations could disrupt companies’ use of bank deposits just as SEC regulatory changes threaten to make money funds less attractive.

More than five years after the financial crisis, reforms designed to make the financial system safer are filtering down to the world of corporate treasury. Basel III capital standards are starting to affect companies’ relationships with their banks, while the prospect of changes in the regulations governing money-market funds has created uncertainty around short-term investing.

“The front end of several years’ worth of the regulatory hammer is flowing through the banks and reaching the treasurer’s desk,” said Anthony Carfang, a partner at consultancy Treasury Strategies.

Pushing for More Treasury Business

Banks have always pushed for more business from their corporate customers, Carfang said, but under the new rules, gaining additional corporate business “goes from a relationship enhancer to a requirement.”

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