Article at a glance:

New frontiers in treasury management at banks

• In recent years, a number of organizational and governance models for bank treasuries have evolved in response to the growing sophistication of financial markets. McKinsey research shows that institutions in the emerging world typically regard the function as a profit center, whereas those in developed countries tend to focus its activities on liquidity and balance sheet management.
• Evidence suggests that these models are converging: some developed-market banks are now undertaking an integrated approach that more closely links asset liability management (ALM) needs and capital markets activity.