TREASURY MANAGEMENT

Tresaury management function includes planning and controlling of profit and the balance sheet structure of the bank within the constraints of liquidity requirements. Assets of the bank and financial institutions include cash at vault as well as cash in other national and foreign institutions, loans and advance, investment, fixed assets and other assets. Liablilities includes deposits, borrowed funds and other liabilities. Assets and liabilities of the bank can be caterogized according to the maturity. Ideally, long- term assets should be financed by long-term liabilities and short term liabilities should be matched with short- term assets.

Treasury management involves the management of sources and uses of funds. The management of total available resources / funds in the banks is known as treasury management. The scope of treasury management  is very wide and covers every types of organization be it charitable,government or corporate. It is very specilized function. In essence treasury management as all about handling the banking requirements , the funding for the business and managing financial risk. It therefore incorporates raising and managing money, currency, commodity and interest rate risk and dealing with the market. In some organization, the realted areas of insurance, pensions, property and taxation aslo fall under the functions of  treasury management. It includes the management of the enterprise holding in and trading government and corporate bonds, currencies, financial futures, options and derivatives, payments system and the associated financial risk management. Managing treasury is to plan , organize and control cash and borrowings sa as to optimize interest and currency flows and minimize the cost of funds. It is investors' confidence in the business.