Treasury Application is important for all banks. However, it is considered lifeline for many banks, specially the ones that heavily rely on either borrowed funds (Classically the Offshore Banks) or that operate with comfortable liquidity and posses high interbank placement portfolio.

Application Scope:

The main areas within banks treasury are all extensively addressed within this application i.e.

1. Money Market (MM)
2. Foreign Exchange Dealing (Forex)

Within each of the above areas, the system handles all aspects of them. The following broad Treasury Products are catered to by the application:

Money Market Deals Supported

• Inter-Bank Taking/Borrowing
• Inter-Bank Placing

Foreign Exchange Deals Supported with:

• Customers
• Other Banks/Counter-parties
• Central Bank

Type of Foreign Exchange Deals Supported:

• Spot Deals
• Forward Fixed Deals
• Forward Option Deals with and without principal decrease
• Forward Option Cover

Application Integration:

The application integrates with any banking system to allow for recording of Assets, Liabilities and Contingent Assets and Liabilities. Specially for the Foreign Exchange Dealing Component, the system offers Forex profit rationalization by mark to market adjustment of Forex deals.

Functionality & Features of the Application:

The treasury operations input a deal slip and rest of the job is performed by the application. It generates automatic accounting entries whenever a MM or Forex deal is booked, accrued, matured or fully or partially taken up. It tracks all dealing limits i.e. dealer, bank, per deal, etc. and, all outstanding deals. Automatically matures the deals on their respective maturity dates with adjustment of brokerage payable. It provides comprehensive reporting on various aspects of Money Market and FOREX deals including deals by maturity, outstanding deals by banks, deals maturing in the next three days, deals confirmation, daily MM and FOREX delivery report against expected receipts and deliveries etc. The application is equipped with powerful on-line inquiries of deals data including principal take-ups, currency positions, deals details, brokerage payable, dealers dealing against their limits, total dealing by bank, etc. It monitors dealing by bank against dealing limits allocated, maximum daily delivery risks, total dealing allowed per dealer etc. The Deal Confirmations and Authorization Telexes for correspondent banks are automatically generated and receipt of deal confirmations from the counterparty is monitored and tracked. Generates, maturity wise, receivable and payable in each currency thus providing long and short positions in each currency. The system accounts for treasury cash flow and gap analysis. For all MM transactions, the accruals are automatically generated and integrated to the accounting system. Each deal's todate accrued interest can be monitored. At the end of month, it generates proofs for the month for reconciliation.