Archive for January, 2009
Saturday, January 31st, 2009
Disadvantages include the following:
Noncore competency. Many banks would prefer not to allocate the required capital or expertise to the design and maintenance of an Internet-based product. The delivery system is significantly more complex than merely loading software onto a disk and having the corporate customer dial ...
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Friday, January 30th, 2009
There are various advantages to the use of Internet-based services:
Cost. A full range of modules is available to users at nominal cost. Automating bank transactions greatly reduces bank costs for personnel, technology, and customer service, and brings a suite of treasury services previously unavailable to many ...
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Thursday, January 29th, 2009
The widespread use of the Internet has encouraged banks to begin to migrate from their treasury workstation products toward Web-based browser technology. This evolution comes at the point in the life cycle of the treasury information system, when banks have begun to generally back away from full ...
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Wednesday, January 28th, 2009
Internal accounting data, including the general ledger and budget reports
Internal financial data, including cash schedules and forecasts
Other internal systems linkages, including receivables, payables, and enterprise resource planning (ERP) configurations
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Tuesday, January 27th, 2009
The term treasury workstation generally refers to a self-contained bank- or vendor-supported treasury information system. The software that supports the system resides on a stand-alone PC or on a network-based computer system, and is comprised of modules that provide some or all of the functionalities described in ...
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Monday, January 26th, 2009
The largest dozen or so banks offer additional modules, designed to meet the needs of global corporations.
Foreign exchange (FX). Banks offer modules to expedite the process of purchasing or selling foreign currency, primarily in the major currencies used in international transactions: the euro, the Japanese yen, ...
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Sunday, January 25th, 2009
Domestic wire transfer. As discussed in Chapter 2, wire transfers are same-day, final transfers primarily used for large dollar transactions. Current practice for control and security strongly encourages these transactions be initiated through a bank's proprietary software (rather than by telephone or fax), using keys ...
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Saturday, January 24th, 2009
A treasury information system allows a company to electronically access its bank accounts and transaction activity. The two prevalent system configurations involve PC-based systems, often referred to as a treasury workstation (TWS), and Internet-based systems, accessed through a Web browser. The largest companies often choose to ...
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Friday, January 23rd, 2009
Overview
After reading this chapter, you will be able to
Understand how treasury information systems are used to expedite the communication between the bank and the company
Review features, benefits, and disadvantages of treasury workstations and Internet-based systems
Develop a coherent strategy for the selection of a treasury information system
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Thursday, January 22nd, 2009
Tax basis. Interest paid on debt is usually deductible from income, reducing the effective overall cost of debt.
Annual basis. 360 or 365. A 365 basis will result in a higher cost of debt.
Maturity. Under normal yield curve conditions, borrowers will pay more for longer-term debt.
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