International Cash Management: a practical guide to managing cash flows, liquidity, working capital and short-term financial risks
Gespeichert in:
| Hauptverfasser: | , , , |
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| Format: | Buch |
| Sprache: | English |
| Veröffentlicht: |
Driebergen
Riskmatrix
2006
|
| Ausgabe: | 2. ed. |
| Schriftenreihe: | Treasury management and finance series
|
| Schlagworte: | |
| Online-Zugang: | Inhaltsverzeichnis |
| Beschreibung: | XVIII, 423 S. graph. Darst. 2400 mm x 1650 mm, 840 gr. |
| ISBN: | 9789080232389 9080232386 |
Internformat
MARC
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| 100 | 1 | |a Wielen, Lex van der |e Verfasser |4 aut | |
| 245 | 1 | 0 | |a International Cash Management |b a practical guide to managing cash flows, liquidity, working capital and short-term financial risks |c Lex van der Wielen in cooperation with Willem van Alphen, Joost Bergen, Phillip Lindow |
| 250 | |a 2. ed. | ||
| 264 | 1 | |a Driebergen |b Riskmatrix |c 2006 | |
| 300 | |a XVIII, 423 S. |b graph. Darst. |c 2400 mm x 1650 mm, 840 gr. | ||
| 336 | |b txt |2 rdacontent | ||
| 337 | |b n |2 rdamedia | ||
| 338 | |b nc |2 rdacarrier | ||
| 490 | 0 | |a Treasury management and finance series | |
| 650 | 7 | |a Cash management |2 swd | |
| 650 | 7 | |a Finanzmanagement |2 swd | |
| 650 | 7 | |a Multinationales Unternehmen |2 swd | |
| 650 | 7 | |a Working capital |2 swd | |
| 700 | 1 | |a Alphen, Willem van |d 1608-1691 |e Verfasser |0 (DE-588)12178858X |4 aut | |
| 700 | 1 | |a Bergen, Joost |e Verfasser |4 aut | |
| 700 | 1 | |a Lindow, Phillip |e Verfasser |4 aut | |
| 856 | 4 | 2 | |m HBZ Datenaustausch |q application/pdf |u http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=015591260&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |3 Inhaltsverzeichnis |
| 943 | 1 | |a oai:aleph.bib-bvb.de:BVB01-015591260 | |
Datensatz im Suchindex
| _version_ | 1823441381251612672 |
|---|---|
| adam_text |
Table of contents
Introduction 1 ix
A
The Multinational Corporation 5
Chapter 1
MNC's organisation 7
Introduction 7
1 The structure of multinational corporations (MNCs) 7
2 Location of procurement, production and sales 8
Chapter 2
MNCs financial organisation 11
Introduction \\
1 The organisation and tasks of financial management 11
1.1 The Controller 12
1.2 Treasurer 13
2 Financial reporting 14
2.1 The balance sheet 15
2.2 Assets If,
2.3 liabilities lg
2.4 Balance sheet ratios 21
2.5 The profit and loss account 23
3 Enterprise resource planning systems 26
Chapter 3
Treasury organisation 29
Introduction 29
1 The increased interest in treasury activities 29
2 Treasury tasks 31
2.1 Cash management 32
2.2 Financial risk management 33
2.3 Corporate finance 35
2.4 Investor relations, bank relations, and other activities 35
3 The mission of the treasury department 36
4 The organisation of the treasury department 37
4.1 The degree of centralisation of the treasury activities 37
4.2 Geographical organisation of the treasury function 42
4.3 Allocation of costs and revenues of treasury activities 43
4.4 Segregation of tasks 44
4.5 Treasury control 45
x j 5 Treasury systems 47
5.1 Deal capture 48
5.2 Reporting 48
5.3 Decision support: risk management 49
B
Transaction Banking 53
Chapter 4
Bank accounts 55
1 Types of bank account 55
1.1 Current account 55
1.2 Deposit account 56
1.3 Money market deposit account 56
1.4 Loan account 56
2 Documentation 57
3 Current account operating costs 58
3.1 Account opening charge 58
3.2 Administrative expenses 58
4 Current account interest income and expenditure 58
4.1 Value dating 59
4.2 Level of interest 60
4.3 Interest calculation method and payment frequency 62
4.4 Earnings credit and compensating balances 63
4.5 Withholding tax 64
5 Non resident accounts 66
5.1 Reasons for opening non resident accounts 66
5.2 Disadvantages of offshore accounts 68
53 Consequences of SEPA 69
INTERNATIONAL CASH MANAGEMENT
Chapter 5
Transaction types 71
Introduction 71
1 Scope of the payment process 71
2 The credit transfer 73
2.1 Costs of outgoing credit transfers 73
2.2 Advantages and disadvantages of outgoing credit transfers 74
3 Outgoing cheque payments 74
3.1 The parties involved in cheque payments 74
3.2 Company cheques 75
3.3 Bank cheques (bank drafts) 76
3.4 Advantages and disadvantages of cheque payments 77 i j
4 Documentary credits 77
4.1 The documents with a documentary credit 78
4.2 The parties involved in a documentary credit 78
4.3 The routing of a documentary credit 79
4.4 Advantages and disadvantages of a documentary credit 81
5 Incoming credit transfers / collections 82
6 Incoming cheque payments 82
6.1 The collection of cheques 82
6.2 The processing of cheques via a lockbox 84
6.3 The value dating of incoming cheques 86
6.4 Advantages and disadvantages of incoming cheque payments 86
7 Direct debits 87
7.1 Cross border direct debits in the euro area 87
7.2 Advantages and disadvantages of direct debts 88
8 Documentary collection 88
8.1 The parties involved in documentary collections 88
8.2 The routing of a documentary collection 89
8.3 Advantages and disadvantages of documentary collections 90
9 Incoming card payments 90
9.1 The debit card 90
9.2 The credit card 91
9.3 Advantages and disadvantages of card collections 93
10 Cash receipts 93
10.1 The counter deposit 93
10.2 The money transporter 93
10.3 Advantages and disadvantages of cash receipts 94
11 List of payment and collection instruments 94
TABLE OF CONTENTS
Chapter 6
Delivery fhannpls 97
Introduction 97
1 Internet systems 97
1.1 Technical aspects of Internet systems 98
1.2 Applications of web based systems 100
1.3 Benefits and constraints of web based systems 101
2 Direct link systems 102
2.1 Technical aspects of direct link systems 103
2.2 Applications of direct link systems 105
2.3 Benefits and constraints of direct link systems 105
xii j 3 Desktop systems 106
3.1 Technical aspects of desktop systems 107
3.2 Functionality of desktop systems 110
3.3 Benefits and constraints of desktop systems 110
4 SWIFTNet 111
4.1 Types of access to SWIFTNet 112
4.2 Technical aspects of SWIFTNet 112
4.3 Applications of SWIFTNet 114
4.5 Benefits and constraints of SWIFTNet 115
5 Overview of delivery channels 116
6 Security 117
6.1 Access control 117
6.2 Security of messages 118
Chapter 7
The payment process 121
Introduction 121
1 How the bank accepts and reads a payment instruction 121
2 The clearing process 122
3 The settlement process 124
4 Alternative ways of processing payments 125
4.1 In house arrangement 125
4.2 RTGS systems 126
5 Local and cross border transfers 127
5.1 Local transfers 127
5.2 Cross border transfers through a correspondent bank 129
5.3 Remote local payments 131
6 Differences between local and cross border payments 136
6.1 Reporting obligations to the central bank 136
6.2 Exchange charges and foreign exchange risks 137
6.3 Different funds transfer infrastructures 138
INTERNATIONAL CASH MANAGEMENT
6.4 Exchange control regulations 139
6.5 Float 139
6.6 Other risks associated with non local payments 140
7 SWIFT 140
7.1 The MT standard of a SWIFTNet FIN message 140
7.2 Example of SWIFTNet FIN messages 142
7.3 Member Administrated Closed User Groups 146
8 SEPA 147
C
Core Cash Management Activities 149 xl
Chapter 8
Cash balances management 151
Introduction 151
1 Cash Balances Management goals 151
2 Cash management tools 152
3 The day to day operational activities of cash balances management 153
3.1 Compiling a cash position statement 153
3.2 Fine tuning of payments 157
3.3 Performing cash concentration transactions 157
3.4 Cut off times 158
4 Evaluation of Cash Balances management 158
Chapter 9
Cash concentration 161
Introduction 161
1 The basic concept of cash concentration 161
1.1 Physical sweeping and notional pooling 163
2 Physical sweeping 163
2.1 Frequency and size of the automatic sweeping transactions 165
2.2 Mono bank sweeping and multi bank sweeping 166
2.3 Sweeping of book balance or value balance 167
2.4 Interest settlement with zero balancing 168
2.5 Credit facilities with zero balancing 169
2.6 Example of zero balancing 170
3 Notional pooling 172
3.1 Interest settlement with notional pooling 172
3.2 Credit facilities with notional pooling 173
3.3 Example of notional pooling 173
3.4 Cross currency notional pooling 175
TABLE OF CONTENTS
3.5 Accounting aspects of notional pooling 177
4 International cash pools 178
4.1 A simple cross border zero balancing pool 178
4.2 Overlay structure, zero balancing 179
4.3 Overlay structure, multi entity pooling 181
4.4 Building global pooling structures 182
5 Checklist for setting up a cash pool 184
5.1 Purpose of the cash pool 184
5.2 Which accounts must be included in the cash pool? 185
5.3 Manual or automated pooling? 185
5.4 Obstacles to setting up cash pools 186
xiv | 5.5 Fiscal regulations 187
5.6 Physical sweeping or notional pooling 188
Chapter 10
Investment management 191
Introduction 191
1 The objectives of investment management 191
2 Defining an investment strategy 192
2.1 Balancing liquidity, risk, and return 193
2.2 Selecting an 'outsourced' or 'do it yourself investment style 194
2.3 Categorising cash into time buckets 195
3 The day to day decision making process of fund management 197
3.1 Drawing up liquidity forecasts 198
3.2 Determining the term of the cash investments/borrowings 199
3.3 Choosing the appropriate Instrument for investing 201
3.4 Determining the liquidity investment portfolio 205
4 Evaluating investment management 208
Chapter 11
Cash flow management 211
Introduction 211
1 Cash flow management: definition, objectives and instruments 211
2 Saving costs within the existing cash flow structure 213
2.1 Negotiating lower payment charges 213
2.2 Reducing bank float and value dating 213
2.3 Substituting expensive payment products with cost effective
instruments 214
2.4 Reducing internal handling costs 215
2.5 Collecting fast paying late 215
3 Changing the company's cash flow structure 216
3.1 Changing the routing of cross border cashflows 216
INTERNATIONAL CASH MANAGEMENT
3.2 Changing inter company cash flows 223
4 Netting 224
4.1 Example of netting 224
4.2 The benefits and costs of netting 227
4.3 The netting cycle 229
5 Changing the internal organisation: the Payment and Collection Factory 230
5.1 The Payment Factory 230
5.2 The collection factory 232
6 Evaluation of cash flow management 233
D xv
Working Capital Management and Financial Risk Management 235
Chapter 12
Working capital management 237
Introduction 237
1 Relevance of working capital management to the MNC 237
2 Net working capital 239
3 The cash conversion cycle 243
4 The purchase to pay cycle 247
4.1 Payment conditions 248
4.2 The procurement process 249
4.3 Receipt of goods and checking packing slip and invoice 253
4.4 Payment and payment inquiry 253
5 The order to collect cycle 256
5.1 Credit standards 256
5.2 Payment conditions 258
5.3 Invoice production 260
5.4 Collections 261
5.5 Evaluation of accounts receivable management 264
6 Stock (inventory) management 268
6.1 Reasons for maintaining stocks 269
6.2 The required size of stocks 270
7 Shared service centres 272
8 Calculating the duration of the cash conversion cycle 274
8.1 Days payables outstanding (DPO) 276
8.2 Days sales outstanding (DSO) 276
8.3 Inventory days outstanding (IDO) 277
8.4 Duration of the cash conversion cycle 278
8.5 Savings by shortening the cash conversion cycle 279
TABLE OF CONTENTS
Chapter 13
Foreign Exchange Risk Management 281
Introduction 281
1 What is foreign exchange risk? 281
1.1 Transaction related risks 281
1.2 Currency translation risk 282
1.3 Economic risk 283
2 Objectives, tasks and instruments of foreign exchange risk management 283
2.1 Determining policy in relation to foreign exchange risks 283
2.2 Developing a foreign exchange rate forecast 287
2.3 Entering into transactions 287
xvi | 3 The currency market 287
3.1 Exchange rate notation 287
3.2 Settlement date 288
4 Foreign exchange risk management in practice 289
4.1 Avoiding foreign exchange risks 289
4.2 Covering foreign exchange risks 290
5 Forward exchange contracts 290
5.1 Differences between spot and forward exchange rates,
and swap points 291
5.2 Offsetting a forward exchange contract 293
6 Currency futures 295
7 Currency options 297
7.1 Listed options and over the counter options 297
7.2 The value of an option 298
7.3 Currency options in practice 300
7.4 Zero cost options 301
8 Forward exchange contracts versus currency options 305
9 Currency swaps 307
9.1 Extending forward exchange contracts 308
9.2 Offsetting liquidity positions in two currencies 309
10 Counterpart limits 311
11 New guidelines for reporting financial derivatives 312
11.1 Distinguishing between hedging and non hedging transactions 312
11.2 Accounting for hedging and non hedging transactions 313
Chapter 14
Interest Risk Management 315
Introduction 315
1 What are interest risks? 315
1.1 Future liquidity positions 316
1.2 Existing long term liquidity positions 316
INTERNATIONAL CASH MANAGEMENT
2 Objective, tasks and instruments of interest risk management 317
3 Instruments for hedging future short term positions 318
3.1 Forward rate agreements (FRAs) 318
3.2 Money market futures 323
4 Instruments for existing long term liquidity positions 325
4.1 Interest rate swaps 326
4.2 Interest rate swaps in practice 328
4.3 Overnight index swap 329
4.4 Interest rate options 331
5 Counterparty limits 336
xvi
E
Related Topics 337
Chapter 15
Cryptography 339
Introduction 339
1 Symmetric systems = secret key cryptography 340
2 A symmetric systems = public key cryptography 341
3 Certificates 344
4 Overview of security services and cryptography 344
Chapter 16
Overview of clearing and settlement systems 347
Introduction 347
1 Features of clearing and settlement systems 347
1.1 Types of participants 348
1.2 Types of transactions processed by the system 348
1.3 Operating procedures 349
1.4 Gross settlement 349
1.5 Risk Management 351
2 United States 353
2.1 Fedwire 353
2.2 Automated Clearing Houses 355
2.3 CHIPS 358
2.4 Cheque clearing in the United States 361
3 The euro area 366
3.1 TARGET 366
3.2 Eurol 369
3.3 STEP1 and STEP2 372
3.4 Cheque processing in Europe 374
TABLE OF CONTENTS
4 United Kingdom 374
4.1 Gross settlement CHAPS 375
4.2 BACS 377
4.3 Cheque processing in the UK 379
5 Japan 380
5.1 BOJ NET 381
5.2 The FXYCS system 382
5.3 Participants 382
5.4 Clearing of domestic transfers Zengin 384
5.5 Cheque processing in Japan 385
6 The CLS (Continuous Linked Settlement) system 386
nii j 6.1 Settlement risk 387
6.2 Members 389
6.3 Operating procedure 389
6.4 Risk management 397
Chapter 17
Credit ratings 399
Introduction 399
1 Credit ratings definitions 399
2 Watchlist 401
3 Rating outlook 402
Chapter 18
The European and the US money markets 403
Introduction 403
1 The money market 403
1.1 The players in the money market 403
1.2 Companies and institutional investors 404
1.3 Governments 405
1.4 Brokers 405
2 The role of the central banks in money markets 405
2.1 The European Central Bank 407
2.2 The Federal Reserve System 409
Chapter 19
ISO Currency Codes 413
Introduction 413
Index 417
INTERNATIONAL CASH MANAGEMENT |
| adam_txt |
Table of contents
Introduction 1 ix
A
The Multinational Corporation 5
Chapter 1
MNC's organisation 7
Introduction 7
1 The structure of multinational corporations (MNCs) 7
2 Location of procurement, production and sales 8
Chapter 2
MNCs financial organisation 11
Introduction \\
1 The organisation and tasks of financial management 11
1.1 The Controller 12
1.2 Treasurer 13
2 Financial reporting 14
2.1 The balance sheet 15
2.2 Assets If,
2.3 liabilities lg
2.4 Balance sheet ratios 21
2.5 The profit and loss account 23
3 Enterprise resource planning systems 26
Chapter 3
Treasury organisation 29
Introduction 29
1 The increased interest in treasury activities 29
2 Treasury tasks 31
2.1 Cash management 32
2.2 Financial risk management 33
2.3 Corporate finance 35
2.4 Investor relations, bank relations, and other activities 35
3 The mission of the treasury department 36
4 The organisation of the treasury department 37
4.1 The degree of centralisation of the treasury activities 37
4.2 Geographical organisation of the treasury function 42
4.3 Allocation of costs and revenues of treasury activities 43
4.4 Segregation of tasks 44
4.5 Treasury control 45
x j 5 Treasury systems 47
5.1 Deal capture 48
5.2 Reporting 48
5.3 Decision support: risk management 49
B
Transaction Banking 53
Chapter 4
Bank accounts 55
1 Types of bank account 55
1.1 Current account 55
1.2 Deposit account 56
1.3 Money market deposit account 56
1.4 Loan account 56
2 Documentation 57
3 Current account operating costs 58
3.1 Account opening charge 58
3.2 Administrative expenses 58
4 Current account interest income and expenditure 58
4.1 Value dating 59
4.2 Level of interest 60
4.3 Interest calculation method and payment frequency 62
4.4 Earnings credit and compensating balances 63
4.5 Withholding tax 64
5 Non resident accounts 66
5.1 Reasons for opening non resident accounts 66
5.2 Disadvantages of offshore accounts 68
53 Consequences of SEPA 69
INTERNATIONAL CASH MANAGEMENT
Chapter 5
Transaction types 71
Introduction 71
1 Scope of the payment process 71
2 The credit transfer 73
2.1 Costs of outgoing credit transfers 73
2.2 Advantages and disadvantages of outgoing credit transfers 74
3 Outgoing cheque payments 74
3.1 The parties involved in cheque payments 74
3.2 Company cheques 75
3.3 Bank cheques (bank drafts) 76
3.4 Advantages and disadvantages of cheque payments 77 i j
4 Documentary credits 77
4.1 The documents with a documentary credit 78
4.2 The parties involved in a documentary credit 78
4.3 The routing of a documentary credit 79
4.4 Advantages and disadvantages of a documentary credit 81
5 Incoming credit transfers / collections 82
6 Incoming cheque payments 82
6.1 The collection of cheques 82
6.2 The processing of cheques via a lockbox 84
6.3 The value dating of incoming cheques 86
6.4 Advantages and disadvantages of incoming cheque payments 86
7 Direct debits 87
7.1 Cross border direct debits in the euro area 87
7.2 Advantages and disadvantages of direct debts 88
8 Documentary collection 88
8.1 The parties involved in documentary collections 88
8.2 The routing of a documentary collection 89
8.3 Advantages and disadvantages of documentary collections 90
9 Incoming card payments 90
9.1 The debit card 90
9.2 The credit card 91
9.3 Advantages and disadvantages of card collections 93
10 Cash receipts 93
10.1 The counter deposit 93
10.2 The money transporter 93
10.3 Advantages and disadvantages of cash receipts 94
11 List of payment and collection instruments 94
TABLE OF CONTENTS
Chapter 6
Delivery fhannpls 97
Introduction 97
1 Internet systems 97
1.1 Technical aspects of Internet systems 98
1.2 Applications of web based systems 100
1.3 Benefits and constraints of web based systems 101
2 Direct link systems 102
2.1 Technical aspects of direct link systems 103
2.2 Applications of direct link systems 105
2.3 Benefits and constraints of direct link systems 105
xii j 3 Desktop systems 106
3.1 Technical aspects of desktop systems 107
3.2 Functionality of desktop systems 110
3.3 Benefits and constraints of desktop systems 110
4 SWIFTNet 111
4.1 Types of access to SWIFTNet 112
4.2 Technical aspects of SWIFTNet 112
4.3 Applications of SWIFTNet 114
4.5 Benefits and constraints of SWIFTNet 115
5 Overview of delivery channels 116
6 Security 117
6.1 Access control 117
6.2 Security of messages 118
Chapter 7
The payment process 121
Introduction 121
1 How the bank accepts and reads a payment instruction 121
2 The clearing process 122
3 The settlement process 124
4 Alternative ways of processing payments 125
4.1 In house arrangement 125
4.2 RTGS systems 126
5 Local and cross border transfers 127
5.1 Local transfers 127
5.2 Cross border transfers through a correspondent bank 129
5.3 Remote local payments 131
6 Differences between local and cross border payments 136
6.1 Reporting obligations to the central bank 136
6.2 Exchange charges and foreign exchange risks 137
6.3 Different funds transfer infrastructures 138
INTERNATIONAL CASH MANAGEMENT
6.4 Exchange control regulations 139
6.5 Float 139
6.6 Other risks associated with non local payments 140
7 SWIFT 140
7.1 The MT standard of a SWIFTNet FIN message 140
7.2 Example of SWIFTNet FIN messages 142
7.3 Member Administrated Closed User Groups 146
8 SEPA 147
C
Core Cash Management Activities 149 xl
Chapter 8
Cash balances management 151
Introduction 151
1 Cash Balances Management goals 151
2 Cash management tools 152
3 The day to day operational activities of cash balances management 153
3.1 Compiling a cash position statement 153
3.2 Fine tuning of payments 157
3.3 Performing cash concentration transactions 157
3.4 Cut off times 158
4 Evaluation of Cash Balances management 158
Chapter 9
Cash concentration 161
Introduction 161
1 The basic concept of cash concentration 161
1.1 Physical sweeping and notional pooling 163
2 Physical sweeping 163
2.1 Frequency and size of the automatic sweeping transactions 165
2.2 Mono bank sweeping and multi bank sweeping 166
2.3 Sweeping of book balance or value balance 167
2.4 Interest settlement with zero balancing 168
2.5 Credit facilities with zero balancing 169
2.6 Example of zero balancing 170
3 Notional pooling 172
3.1 Interest settlement with notional pooling 172
3.2 Credit facilities with notional pooling 173
3.3 Example of notional pooling 173
3.4 Cross currency notional pooling 175
TABLE OF CONTENTS
3.5 Accounting aspects of notional pooling 177
4 International cash pools 178
4.1 A simple cross border zero balancing pool 178
4.2 Overlay structure, zero balancing 179
4.3 Overlay structure, multi entity pooling 181
4.4 Building global pooling structures 182
5 Checklist for setting up a cash pool 184
5.1 Purpose of the cash pool 184
5.2 Which accounts must be included in the cash pool? 185
5.3 Manual or automated pooling? 185
5.4 Obstacles to setting up cash pools 186
xiv | 5.5 Fiscal regulations 187
5.6 Physical sweeping or notional pooling 188
Chapter 10
Investment management 191
Introduction 191
1 The objectives of investment management 191
2 Defining an investment strategy 192
2.1 Balancing liquidity, risk, and return 193
2.2 Selecting an 'outsourced' or 'do it yourself investment style 194
2.3 Categorising cash into time buckets 195
3 The day to day decision making process of fund management 197
3.1 Drawing up liquidity forecasts 198
3.2 Determining the term of the cash investments/borrowings 199
3.3 Choosing the appropriate Instrument for investing 201
3.4 Determining the liquidity investment portfolio 205
4 Evaluating investment management 208
Chapter 11
Cash flow management 211
Introduction 211
1 Cash flow management: definition, objectives and instruments 211
2 Saving costs within the existing cash flow structure 213
2.1 Negotiating lower payment charges 213
2.2 Reducing bank float and value dating 213
2.3 Substituting expensive payment products with cost effective
instruments 214
2.4 Reducing internal handling costs 215
2.5 Collecting fast paying late 215
3 Changing the company's cash flow structure 216
3.1 Changing the routing of cross border cashflows 216
INTERNATIONAL CASH MANAGEMENT
3.2 Changing inter company cash flows 223
4 Netting 224
4.1 Example of netting 224
4.2 The benefits and costs of netting 227
4.3 The netting cycle 229
5 Changing the internal organisation: the Payment and Collection Factory 230
5.1 The Payment Factory 230
5.2 The collection factory 232
6 Evaluation of cash flow management 233
D xv
Working Capital Management and Financial Risk Management 235
Chapter 12
Working capital management 237
Introduction 237
1 Relevance of working capital management to the MNC 237
2 Net working capital 239
3 The cash conversion cycle 243
4 The purchase to pay cycle 247
4.1 Payment conditions 248
4.2 The procurement process 249
4.3 Receipt of goods and checking packing slip and invoice 253
4.4 Payment and payment inquiry 253
5 The order to collect cycle 256
5.1 Credit standards 256
5.2 Payment conditions 258
5.3 Invoice production 260
5.4 Collections 261
5.5 Evaluation of accounts receivable management 264
6 Stock (inventory) management 268
6.1 Reasons for maintaining stocks 269
6.2 The required size of stocks 270
7 Shared service centres 272
8 Calculating the duration of the cash conversion cycle 274
8.1 Days payables outstanding (DPO) 276
8.2 Days sales outstanding (DSO) 276
8.3 Inventory days outstanding (IDO) 277
8.4 Duration of the cash conversion cycle 278
8.5 Savings by shortening the cash conversion cycle 279
TABLE OF CONTENTS
Chapter 13
Foreign Exchange Risk Management 281
Introduction 281
1 What is foreign exchange risk? 281
1.1 Transaction related risks 281
1.2 Currency translation risk 282
1.3 Economic risk 283
2 Objectives, tasks and instruments of foreign exchange risk management 283
2.1 Determining policy in relation to foreign exchange risks 283
2.2 Developing a foreign exchange rate forecast 287
2.3 Entering into transactions 287
xvi | 3 The currency market 287
3.1 Exchange rate notation 287
3.2 Settlement date 288
4 Foreign exchange risk management in practice 289
4.1 Avoiding foreign exchange risks 289
4.2 Covering foreign exchange risks 290
5 Forward exchange contracts 290
5.1 Differences between spot and forward exchange rates,
and swap points 291
5.2 Offsetting a forward exchange contract 293
6 Currency futures 295
7 Currency options 297
7.1 Listed options and over the counter options 297
7.2 The value of an option 298
7.3 Currency options in practice 300
7.4 Zero cost options 301
8 Forward exchange contracts versus currency options 305
9 Currency swaps 307
9.1 Extending forward exchange contracts 308
9.2 Offsetting liquidity positions in two currencies 309
10 Counterpart limits 311
11 New guidelines for reporting financial derivatives 312
11.1 Distinguishing between hedging and non hedging transactions 312
11.2 Accounting for hedging and non hedging transactions 313
Chapter 14
Interest Risk Management 315
Introduction 315
1 What are interest risks? 315
1.1 Future liquidity positions 316
1.2 Existing long term liquidity positions 316
INTERNATIONAL CASH MANAGEMENT
2 Objective, tasks and instruments of interest risk management 317
3 Instruments for hedging future short term positions 318
3.1 Forward rate agreements (FRAs) 318
3.2 Money market futures 323
4 Instruments for existing long term liquidity positions 325
4.1 Interest rate swaps 326
4.2 Interest rate swaps in practice 328
4.3 Overnight index swap 329
4.4 Interest rate options 331
5 Counterparty limits 336
xvi
E
Related Topics 337
Chapter 15
Cryptography 339
Introduction 339
1 Symmetric systems = secret key cryptography 340
2 A symmetric systems = public key cryptography 341
3 Certificates 344
4 Overview of security services and cryptography 344
Chapter 16
Overview of clearing and settlement systems 347
Introduction 347
1 Features of clearing and settlement systems 347
1.1 Types of participants 348
1.2 Types of transactions processed by the system 348
1.3 Operating procedures 349
1.4 Gross settlement 349
1.5 Risk Management 351
2 United States 353
2.1 Fedwire 353
2.2 Automated Clearing Houses 355
2.3 CHIPS 358
2.4 Cheque clearing in the United States 361
3 The euro area 366
3.1 TARGET 366
3.2 Eurol 369
3.3 STEP1 and STEP2 372
3.4 Cheque processing in Europe 374
TABLE OF CONTENTS
4 United Kingdom 374
4.1 Gross settlement CHAPS 375
4.2 BACS 377
4.3 Cheque processing in the UK 379
5 Japan 380
5.1 BOJ NET 381
5.2 The FXYCS system 382
5.3 Participants 382
5.4 Clearing of domestic transfers Zengin 384
5.5 Cheque processing in Japan 385
6 The CLS (Continuous Linked Settlement) system 386
nii j 6.1 Settlement risk 387
6.2 Members 389
6.3 Operating procedure 389
6.4 Risk management 397
Chapter 17
Credit ratings 399
Introduction 399
1 Credit ratings definitions 399
2 Watchlist 401
3 Rating outlook 402
Chapter 18
The European and the US money markets 403
Introduction 403
1 The money market 403
1.1 The players in the money market 403
1.2 Companies and institutional investors 404
1.3 Governments 405
1.4 Brokers 405
2 The role of the central banks in money markets 405
2.1 The European Central Bank 407
2.2 The Federal Reserve System 409
Chapter 19
ISO Currency Codes 413
Introduction 413
Index 417
INTERNATIONAL CASH MANAGEMENT |
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| author | Wielen, Lex van der Alphen, Willem van 1608-1691 Bergen, Joost Lindow, Phillip |
| author_GND | (DE-588)12178858X |
| author_facet | Wielen, Lex van der Alphen, Willem van 1608-1691 Bergen, Joost Lindow, Phillip |
| author_role | aut aut aut aut |
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| building | Verbundindex |
| bvnumber | BV022382291 |
| classification_rvk | QK 640 |
| ctrlnum | (OCoLC)611748598 (DE-599)BVBBV022382291 |
| discipline | Wirtschaftswissenschaften |
| discipline_str_mv | Wirtschaftswissenschaften |
| edition | 2. ed. |
| format | Book |
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| id | DE-604.BV022382291 |
| illustrated | Illustrated |
| index_date | 2024-07-02T17:11:46Z |
| indexdate | 2025-02-07T23:00:12Z |
| institution | BVB |
| isbn | 9789080232389 9080232386 |
| language | English |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-015591260 |
| oclc_num | 611748598 |
| open_access_boolean | |
| owner | DE-N2 DE-1051 |
| owner_facet | DE-N2 DE-1051 |
| physical | XVIII, 423 S. graph. Darst. 2400 mm x 1650 mm, 840 gr. |
| publishDate | 2006 |
| publishDateSearch | 2006 |
| publishDateSort | 2006 |
| publisher | Riskmatrix |
| record_format | marc |
| series2 | Treasury management and finance series |
| spelling | Wielen, Lex van der Verfasser aut International Cash Management a practical guide to managing cash flows, liquidity, working capital and short-term financial risks Lex van der Wielen in cooperation with Willem van Alphen, Joost Bergen, Phillip Lindow 2. ed. Driebergen Riskmatrix 2006 XVIII, 423 S. graph. Darst. 2400 mm x 1650 mm, 840 gr. txt rdacontent n rdamedia nc rdacarrier Treasury management and finance series Cash management swd Finanzmanagement swd Multinationales Unternehmen swd Working capital swd Alphen, Willem van 1608-1691 Verfasser (DE-588)12178858X aut Bergen, Joost Verfasser aut Lindow, Phillip Verfasser aut HBZ Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=015591260&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
| spellingShingle | Wielen, Lex van der Alphen, Willem van 1608-1691 Bergen, Joost Lindow, Phillip International Cash Management a practical guide to managing cash flows, liquidity, working capital and short-term financial risks Cash management swd Finanzmanagement swd Multinationales Unternehmen swd Working capital swd |
| title | International Cash Management a practical guide to managing cash flows, liquidity, working capital and short-term financial risks |
| title_auth | International Cash Management a practical guide to managing cash flows, liquidity, working capital and short-term financial risks |
| title_exact_search | International Cash Management a practical guide to managing cash flows, liquidity, working capital and short-term financial risks |
| title_exact_search_txtP | International Cash Management a practical guide to managing cash flows, liquidity, working capital and short-term financial risks |
| title_full | International Cash Management a practical guide to managing cash flows, liquidity, working capital and short-term financial risks Lex van der Wielen in cooperation with Willem van Alphen, Joost Bergen, Phillip Lindow |
| title_fullStr | International Cash Management a practical guide to managing cash flows, liquidity, working capital and short-term financial risks Lex van der Wielen in cooperation with Willem van Alphen, Joost Bergen, Phillip Lindow |
| title_full_unstemmed | International Cash Management a practical guide to managing cash flows, liquidity, working capital and short-term financial risks Lex van der Wielen in cooperation with Willem van Alphen, Joost Bergen, Phillip Lindow |
| title_short | International Cash Management |
| title_sort | international cash management a practical guide to managing cash flows liquidity working capital and short term financial risks |
| title_sub | a practical guide to managing cash flows, liquidity, working capital and short-term financial risks |
| topic | Cash management swd Finanzmanagement swd Multinationales Unternehmen swd Working capital swd |
| topic_facet | Cash management Finanzmanagement Multinationales Unternehmen Working capital |
| url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=015591260&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
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