As shortish Comment today, as last Friday we sent you a special CEO message with a video encouraging you to attend or send a staff member to FTA’s Fundamentals of Treasury Operations Conference in Sydney, Friday August 7th.
In case you missed the video, please go to the Conference home page: www.foto.ftasecretariat.com.au
We have since added our speaker group, and welcome:
- Peter Lai , Director, Rates Product Management at Thomson Reuters who will address CVA & DVA calculation issues, and
- Sam Wilson, Operations Accountant at Australian Broadcasting Corporation (ABC) has joined the Head of Treasury Operations panel.
Key points in case you missed them:
- If you’ve only ever been given on-the-job training in treasury, you will benefit from attending the Fundamentals conference, whatever your level.
- With technology a key to keeping your treasury up-to-date and you will benefit from hearing from a variety of system vendors and your fellow corporates will be discussing the business case for their technology decisions, while explaining their own experience through implementation case studies.
- If you are not attending, you owe it to your treasury staff to send them.
- It’s like “training-lite”. Delegates will also learn what they don’t know and have a better plan for how to acquire that knowledge.
- This is an ideal event for new entrants to treasury. You can sign up younger staff to a Pathways membership to access a conference discount, and an FTA annual membership.
So come to FTA’s Fundamentals of Treasury Operations Conference and get a primer – or a refresher – on key treasury disciplines and to network with other like-minded people.
More on FTA events below.
Nominate for FTA Board
Last week, full financial FTA members in four states – NSW, VIC, WA & QLD were sent an invitation to nominate to be the State Chapter representative on the FTA Board. Nominations close on September 15th.
This is an opportunity to contribute to your profession – and also to gain valuable practical governance experience. Being a lean association, there are expectations of active engagement in FTA activities as well as contribution to Board and its committees. Members looking to dip their toes into working with the Association are encouraged to contact me about working on FTA chapter committees. I am currently in the process of responding to several such inquiries.
Melbourne Money and Finance 2015
This week I attended the 20th Melbourne Money and Finance. Conducted by the Australian Centre for Financial Studies, MMFC is a prac-ademic event where working research papers are presented then critiqued by expert discussants and further workshopped by a high calibre delegate group made up of senior finance academics, policy-makers, regulators and leading industry strategists.
Discussion is conducted under the Chatham House rule so we are not at liberty to relate who ventured which opinion. The following are some key impressions from the event:
- Given Australian banks continued reliance on wholesale debt funding from offshore, there was a consensus on the need for Australia’s major banks to increase core regulatory capital as recommended by the Murray Financial System Inquiry. Expect more bank equity raisings.
- To date the major Australian banks had held onto their share of domestic lending boosted by the contraction of shadow banking and regional banks due to the GFC. This contrasts with the US where the regulated bank sector accounts for only 30% of lending. While keeping lending in a regulated environment may add to stability, delegates recognised that much innovation takes place outside the prudentially regulated environment.
- With FinTech a major growth industry offshore, big data is seen as a way of empowering entrepreneurs and boosting productivity. (Academics and policy-makers also want Australia to develop better datasets.) However one author suggested caution or Australians would risk loss of “informational self-determination” i.e. lose “control of how one presents oneself to others”, a more nuanced concept than “privacy”.
- Discussion touched on the risk of a systemic liquidity risk event when quantitative easing is unwound given (among other things) the greater use of collateral in OTC markets and reforms which have reduced bank trading books.
- Participants were concerned that in zero bound interest rate environments like US, Japan and Europe there is no new trick if QE doesn’t work and economies slip back in to recession. (Japan is expected to be the litmus test.)
- While the US may raise the Fed funds rate as early as Q4, net stimulus from QE will continue in the US for some time, and be outweighed by ECB and BoJ stimulus when unwound in 2016.
- No-one had a clear view of when QE would end and what it would look like.
Finalised papers will be published on the ACFS website in coming weeks:
Refer – http://australiancentre.com.au/.
Upcoming FTA PD events
I will be chairing the following sessions online:
- Webinar – Treasury Reporting to the Board Thursday 23 July 12.30 – 1.15pm
Click here for more info
- Webinar – Sungard/KPMG “Transforming Your Treasury – Adopting the Best Approach for Your Corporate Treasury
PART 1 of 3: Governance and Financial Risk
Thursday 30 July 12.30 – 1.15pm
Click here for more info
Paul Travers FFTP, Executive Director, KPMG Andrew Winders Vice President, Asia-Pacific, SunGard
- Supply-chain Finance with Westpac Institutional Bank in 4 cities in mid-August. Watch this space
- And I will be chairing FTA’s Fundamentals of Treasury Operations Conference
Friday 7 August, Pullman Hyde Park, Sydney
Click here for more info
All the best, David
David Michell CFTP (Snr)
CEO, The Finance and Treasury Association