Global Transaction Banking

Course Overview

This course offers an in-depth exploration into the intricate world of transaction banking, a critical area that supports global trade and corporate financial management.

Participants will delve into cash management, understanding its significance, the corporate treasury environment, objectives, and techniques such as forecasting, liquidity management, cash sweeps, notional pooling, and the role of technology in modern banking solutions like TMS and electronic banking platforms.

The course extends to trade finance, covering key documents, terms of trade, regulatory aspects, various letters of credit, guarantees, and government-backed export programs. It also navigates through the essentials of working capital management, discussing the business cycle, processes like F2F, O2C, P2P, and optimisation strategies for receivables and payables. Additionally, the curriculum addresses credit risk within transactional banking, including assessment of market, operational, and country risks, and strategic management to protect the bank’s interests.

Commodities trading within trade finance is also explored, providing insights into the history, nature of commodity markets, and financing strategies such as structured warehouse finance.

Learning Objectives

• Understand the Fundamentals of Transaction Banking: Participants will gain a thorough understanding of what defines transaction banking, its importance in the global financial landscape, and the evolving role of corporate treasury environments, setting the foundation for advanced topics in cash and trade finance management.
• Master Cash Management Techniques: Learners will acquire the skills to effectively manage corporate cash, including forecasting, managing floats, optimising liquidity, implementing cash sweeps and notional pooling, and utilising factoring and supply chain financing to maximise the return on cash.
• Navigate Trade Finance Instruments and Regulations: Participants will delve into the intricacies of trade finance, learning about key documents, Incoterms 2010, regulatory bodies, and the structures and uses of various trade finance instruments such as letters of credit, documentary collections, guarantees, and export credit insurance.
• Optimise Working Capital Management: The course will equip participants with strategies to manage the business cycle efficiently through the F2F, O2C, and P2P processes, including understanding working capital metrics (DSO, DPO, DIO), and optimising payables and receivables to improve financial health.
• Assess and Manage Credit and Operational Risks in Transaction Banking: Learners will be introduced to the concepts of credit risk, including Exposure at Default (EAD), Loss Given Default (LGD), and Probability of Default (PD), along with strategies to manage market, operational, liquidity, strategic, and reputational risks, with a focus on country and industry risk analysis.
• Explore Commodities and Structured Trade Finance: Participants will explore the role of commodities in trade finance, gaining insights into the history and nature of commodity markets, supporting commodity traders, using goods as collateral, and structured finance solutions such as warehouse finance and oil import facilities.