New Zealand banking sector trends for CFOs and treasurers

Factors Leading to Liquidity Risk in the Banking Sector The internal and external factors that may potentially lead to liquidity risk in the banking sector are as follows : ◼️Internal Banking Indicators 1️⃣ High off-balance sheet exposures. 2️⃣ The banks relying heavily on the short-term corporate deposits. 3️⃣ A negative gap (liability is more than the asset) in the maturity dates of assets and liabilities. 4️⃣ The banks' rapid asset expansions exceed the available funds on the liability side. 5️⃣ Concentration of deposits in the short-term Tenor. 6️⃣ Less allocation in the liquid government instruments. 7️⃣ Fewer placements of funds in long-term deposits. ◼️External Banking Indicators 1️⃣ Very sensitive financial markets depositors. 2️⃣ External and internal economic shocks. 3️⃣ Low/slow economic performances. 4️⃣ Decreasing depositors' trust on the banking sector. 5️⃣ Non-economic factors viz inefficient cash flow management, lack of funding. 6️⃣ Sudden and massive liquidity withdrawals from depositors. 7️⃣ Unplanned termination of government deposits. Thanks for reading….

"On the surface, banking with a credit union may seem a lot like a traditional bank. But it’s not." Learn more in this article from The Canadian Press: https://ow.ly/HsQU30sQl5H

The CAP Banking Team has released an update on board compensation levels and practices for 199 publicly traded U.S. banks. Our research looks across four asset size groups — from $1B to over $50B — and explores how compensation practices differ by size. The report also highlights the latest trends in director pay and provides a view on what to expect in the year ahead. 📥 Read the full update here: https://lnkd.in/egudCjMx The CAP Banking Team: Kelly Malafis, Eric Hosken, Shaun Bisman, Mike Bonner

Global Banking Annual Review 2025: Why precision, not heft, defines the future of banking: Banks need to prepare for the next growth curve. Global Banking Annual Review 2025 shows how a targeted approach can help them thrive. http://dlvr.it/TNqt7y

Assets are the foundation of a bank’s strength and sustainability. In banking, assets represent everything the bank owns or lends that generates value—loans, investments, cash reserves, and fixed assets. They are crucial because: 🔹 Revenue Generation: Loans and investments generate income through interest and returns. 🔹 Liquidity Management: Cash reserves and liquid assets ensure smooth daily operations. 🔹 Financial Stability: Strong asset quality reduces default risk and boosts customer confidence. 🔹 Regulatory Compliance: Asset adequacy and quality are key for meeting RBI/Basel norms. 🔹 Growth & Expansion: Healthy assets enable banks to lend more and support the economy. ✅ In short, asset quality reflects the true health of a bank—strong assets build trust, stability, and growth. #BankingAssets #BFSI #CoreBanking #DigitalBanking #FinancialStability #RiskManagement #BankingOperations #BaselIII #AssetManagement #BankingGrowth

Zeph van den Bergh and me recently published an article on how banks can improve their ALM practises by enhancing their treasury frameworks. We offer the opportunity to benchmark the maturity of your framework through a quick survey. Read the article via the link below! https://lnkd.in/ehsHWCHR #ALM #treasury #banking #riskmanagement Zanders

Fernando De La Mora, Co-Head of A&M’s Financial Services Industry Group was recently featured in the Financial Times, where he discussed findings from our “Banking Deregulation Primer” report which examines the potential impact of capital reductions that could impact global competitive dynamics. Read the FT article: https://okt.to/hfMtVj Read the Banking Deregulation Primer report: https://okt.to/9xiryq #Deregulation #Capital #Banking #FinanicalServices #AMon

Great to see this coverage! Fernando and the team continue to highlight the real implications of capital policy changes on global banking dynamics. Expanding lending capacity can create opportunity, but the quality of that growth will matter just as much as the quantity. The core question for bank executive teams now is: what will you do to optimize this capital allocation windfall? Whether it's reinvestment, balance sheet restructuring, or strategic M&A, the decisions made in this window could define the next competitive cycle. So proud to see A&M leading this conversation. #Banking #Finance #Regulation

Importance of Assets in the Banking System. Assets are the foundation of a bank’s financial strength — they represent how effectively a bank utilizes its funds to generate income and maintain financial stability. Managing assets efficiently is key to profitability, liquidity, and long-term growth. 🔹 1. Revenue Generation Bank assets such as loans, investments, and advances generate interest income — the primary source of a bank’s profitability. 🔹 2. Liquidity Management Proper asset allocation ensures the bank can meet withdrawal demands and maintain a healthy liquidity position. 🔹 3. Credit Expansion Assets enable banks to lend more to individuals, businesses, and industries, fueling economic growth and development. 🔹 4. Risk Management A well-balanced asset portfolio helps diversify risk across sectors and reduces exposure to defaults or market fluctuations. 🔹 5. Regulatory Compliance Banks must maintain asset quality and adhere to regulatory standards (like CRR, SLR, and Basel norms) to ensure financial stability. 🔹 6. Investor & Customer Confidence Strong, well-managed assets build trust among stakeholders, enhancing the bank’s reputation and reliability. ✅ In short: Assets are not just financial instruments — they’re the lifeblood of a bank’s operations, determining its strength, sustainability, and ability to support the economy. #BankingSystem #AssetsManagement #CoreBanking #BFSI #FinancialStability #RiskManagement #LiquidityManagement #DigitalBanking #EconomicGrowth #BankingTransformation

Banks are advocating for a single, risk-based capital standard to replace the current, more complex system, arguing it would simplify regulations, reduce capital requirements, and free up money for lending https://lnkd.in/e9g_78wW