Articles

Malaysia: The Shared Services Edge for Corporations

Did you know that more than 200 of the world's leading multinationals have Shared Service Centers (SSCs) in Malaysia ? If you want highly competitive running costs and personnel capable of managing high value treasury activities, why not join them?

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Getting More from Global Cash

In the U.S., using earnings credit programs to offset cash management service fees has helped corporations optimize the value of their balances. Now, earnings credits are going global offering a new way to manage cost, enhance cash balance visibility and improve efficiency.

Is Redundancy Your Reality?

Multinational corporations on the fast track to reducing operational costs eventually face a crossroad. Take the easier route of immediate cost reduction by disbursing work to lower-cost processing areas company wide, and the path eventually slows to flat or diminishing returns.

Effectively Managing a Subsidiary’s Payment Flows

One simple but effective strategy for efficiently handling subsidiary transactions is the implementation of an offshore account approach to managing payment inflows and outflows. This is a powerful solution for many multinational corporations and helps avoid or reduce foreign exchange transaction costs, reduces risks and improves operational efficiency.

Exploring the Global Shift to SWIFT for Corporates

Global corporations are on a mission to simplify. Multiple banking interfaces across their growing networks of banking partners are overly complex to navigate and often inefficient to operate. Financial institutions vary in how they connect to their corporate clients, format financial messages, and allow cash to be moved and managed across their banking networks. Corporations also face considerable difficulty coordinating multiple bank accounts that require different communications channels, contingency arrangements and security standards.

Navigating Towards New Growth and Efficiency in Asia

Q&A with Lillian Sim, Asia Pacific Head of Multinational Corporate Sales, J.P. Morgan Treasury Services

4 Steps to Recharge Your Counterparty Risk Approach

Nearly five years after the recent Great Recession, corporations are still haunted by some of the same pitfalls and risks that preceded the crisis. Corporate treasurers continue to juggle unprecedented amounts of cash across multiple, potentially risky bank counterparties and invest these funds based on stale investment policies with sometimes inflexible limits. Despite improvements in technology, treasurers’ task of funding ongoing business and taking advantage of opportunities for growth is becoming more challenging as cash is spread over more and more countries and banks. It is vital for corporate treasurers to reevaluate their investment policies to ensure effective visibility and governance.

Maximising the Value of Liquidity Opportunities for Corporates

The Global Financial Crisis of 2007-08 saw major pressure on treasuries to maximise their use of internal liquidity, but finding ways to accomplish this has always been a concern for Asian corporates operating in a highly regulated region. Nevertheless, the visibility, control, efficiency and accessibility needed to achieve this can all perfectly intertwine - if corporates have the right strategy and tools.

Innovations to drive leadership in banking

As Indonesian companies expand into new markets and as regulatory requirements continue to grow, financial institutions in Indonesia need to leverage new solutions and global expertise to manage their business better, amidst increasingly dynamic and volatile economic conditions.

Fully Leveraging the Capabilities of a Global Bank

As an increasing number of global and Asian-headquartered multinationals (MNCs) begin to manage cash out of Asia rather than New York or London, developing the right structure for their Regional Treasury Center (RTC) is essential and setting up the RTC in a business-friendly location like Singapore offers a multitude of advantages.

Taking Payments and Foreign Exchange to a New Level

Amidst rapid change across the payments landscape, growth in the global foreign exchange market and a greater focus on reducing risk, corporates are looking at how best to simplify their international cash management processes end-to-end, in order to increase efficiency, reduce cost, free up resources and improve visibility. Leading banks are developing solutions not just to assist corporates with managing and integrating foreign exchange and payments effectively, but also to help them analyze the right metrics and benchmark against peers so they can develop a roadmap for superior performance.

Payment Processing in RMB – Challenges and Opportunities

With constraints on cross border payment processing and ongoing regulatory changes in China, multinational corporations (MNCs) are applying payment and treasury center best practices to enhance payment processing efficiency, and manage foreign exchange (FX) risks more effectively for Renminbi (RMB) cross-border transactions.

One Country, Two Currencies, Three Clearing Ways

With change being a constant in the Renminbi (RMB) clearing market, financial institutions domiciled outside of Greater China will be challenged to determine the best approach for market entry. This article provides insights for financial institutions looking to navigate the RMB environment and developing a clearing strategy.

Corridors of Power: China’s Latin American Linkage

China’s slowing economic growth has implications that extend far beyond its domestic borders. Key trading partners in particular seem vulnerable to the knock-on effects of reductions in imports or exports. In the case of Brazil and Chile, however, concerns about potential economic disruption seem misplaced.

FATCA: an Enhanced Operating Model

By July 1, 2014, J.P. Morgan will launch an enhanced operating model in response to FATCA regulatory requirements.

The Evolution of Trade Finance: A Financial Institution’s Perspective

Protracted global economic uncertainty and ongoing regulatory change make this a challenging time for financial institutions engaged in trade finance. In addition to these external headwinds, banks face an uphill task maintaining profitability amidst a volatile operating environment and rising operating costs. In spite of this, growth opportunities exist.

Banks! Don’t Wait for Corporates to Ask about Bank Payment Obligation

SMALL- AND MEDIUM-SIZED BANKS generally prefer to market their traditional trade offerings – products like letters of credit – while larger banks often aim at fulfilling the supply chain finance demands of their corporate customers. As a result, there is a remarkable lack of focus in marketing one of the most exciting innovations in Trade Finance: the Bank Payment Obligation (BPO). Why is this?

International Trade in RMB – Aspiration or Adoption?

As usage of Renminbi (RMB) for trade settlement gains traction, there is considerable interest amongst corporates and financial institutions about whether and when they should establish RMB capability to ensure their full participation in this growing trend within the international trade arena.

Seizing the SEPA Opportunity in Asia

The Single Euro Payments Area (SEPA) is much more than a European operational compliance challenge, and should be seen as a strategic opportunity for corporations to restructure their European cash and liquidity management functions so that they can be run far more efficiently, and significantly reduce costs and risks. The fundamental change that SEPA brings from an operational perspective is the standardization of all euro Automated Clearing House (ACH) payments in the SEPA zone.  All businesses that make euro payments within Europe can do so using a single euro account to submit a SEPA compliant payment, which becomes mandatory with effect from 1 February 2014.

The Use of RMB as a Settlement Currency – A Commercial Bank’s Perspective

All ready to start clearing Renminbi (RMB) payments? Not seeing any or low volumes? This article flags how a Financial Institution (FI) can encourage usage of RMB by understanding the benefits the RMB internationalization offers to a corporate client.

Path to Treasury Centralization

Globalization continues at a staggering pace and companies around the world are moving further afield, faster than they ever have before to drive business growth. For treasurers, this coupled with the imperative to do more with less, poses fundamental opportunities and challenges in how they approach risk management and enhance operating and funding efficiencies. Centralization may be an answer.

The Power of Innovation and Client Service Behind Your Business (Part 2 of 2)

Q&A with Diane Quinn, J.P. Morgan Global Client Executive for Large Corporate Sales

Dodd-Frank Section 1073: The Remittance Transfer Fee Disclosure Mandate

The Consumer Financial Protection Bureau (CFPB) recently published a final rule for implementation of Section 1073 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ("DFA 1073").

Japan: The Sleeping Giant Awakes!

Japan's famous Lost Decade actually turned out to be a Lost Decade-and-a-Half, with little or no growth for more than 15 years in what was previously the world's second largest economy. But policy reforms designed to ignite Japan's economy are now helping lift the country out of stagnation.

The View from Asia-Pacific

A Q&A with Kiat Lim, Asia Financial Institution Group Sales Head, J.P. Morgan

What Does Leadership Mean to Our Corporate Clients? (Part 1 of 2)

Q&A with Diane Quinn, J.P. Morgan Global Client Executive for Large Corporate Sales

Asia at the Crossroad

After decades of rapid growth, Asia is entering a new phase of moderate growth. Both the World Bank and Asian Development Bank (ADB) have scaled back their forecasts for the region to factor in the moderate growth in China and India. ADB has also emphasized that Asia has to adapt to this new growth environment. The region needs a new growth model – one that is less reliant on export, promotes balanced growth and is driven by productivity and efficiency.

Southeast Asia: Next Growth Frontier

Rapid growth in all countries in Southeast Asia offers superb business opportunities for corporations. Navigating the complex and diverse markets in the region effectively will be crucial for success.

Is Now the Time for Corporations to Invoice in RMB?

Market expectations are that up to 35% of trade with China could be settled in RMB by 2015. Is NOW the time for companies to start invoicing in renminbi (RMB)? This article flags key considerations for treasurers weighing the operational and risk management merits of building RMB into their regional and global processes.

Spotlight on RMB Services

J.P. Morgan now offers RMB services in 14 offshore locations worldwide, including Hong Kong, New York, Singapore, Sydney, London, Mumbai, Taipei, Seoul, Tokyo, San Paolo, Manila, Kuala Lumpur and Bangkok. In addition, J.P. Morgan has launched an innovative repo financing collateral management platform, which has been developed in partnership with the Hong Kong Monetary Authority (HKMA).

RMB Clearing: Navigating On and Offshore

The move towards RMB internationalization began in 2010 and is rapidly accelerating — it has no reverse gear.

2013: What’s the Outlook for Financial Institutions

Q&A with Lewis Warren, J.P. Morgan Global Client Executive for Financial Institutions, Healthcare and Federal Government

Regulation and recovery: a period of adjustment

Four years after the global crisis, bankers and their corporate customers face what is arguably the most challenging time in the history of trade finance. Much of that challenge comes from new compliance and regulatory burdens that are here to stay – and likely to increase. There is talk across the industry of a “new normal” in which the high cost of capital and compliance will make trade finance much more difficult for banks to provide. Clearly, trade and trade finance are entering a period of adjustment.

A Global U.S. Dollar Solution for Vale

J.P. Morgan helps global mining giant lower costs and gain visibility over accounts worldwide.

Supporting Growth and Best Practice in China

Treasury managers are playing an increasingly important role in the growth of both local and foreign-owned multinationals (MNCs) in China and the market’s uniqueness and evolution continue to challenge the best of them. Benjamin Lam, J.P. Morgan’s Head of Trade, China, and Michael Nelson, Head of Corporate Sales, Cash Management, China, answer the questions on challenges and best practice that top treasurers’ minds today.

Beyond Visibility: Best Practice Liquidity Management

Liquidity management is not just about gaining visibility over a company’s cash positions. This article examines what lies beyond visibility and how to get there.

Achieving an optimal euro payments strategy with J.P. Morgan's Global Euro Payments

As uncertainties in the eurozone persist, the financial services industry is devoting significant resources to planning for possible market events. In parallel, the industry is preparing for migration to SEPA (Single Euro Payments Area), which needs to occur by February 1, 2014. SEPA will change the eurozone’s low-value payments and collections landscape by harmonizing the way banks make and process low-value euro payments in the 17 euro countries under a single set of SEPA Credit Transfer and SEPA Direct Debit scheme rules.

The Brightest Minds Explore Strategies for Powering Global Business

At Sibos 2012, financial services professionals from across the globe will once again gather to engage in rich dialogue that addresses the most pressing business issues of the day. A robust week of discussion and engagement will explore challenges that are top of mind with financial services executives, including managing shifts in economic power, regulation and technology.

Insights from Lewis Warren

Lewis Warren recently joined J.P. Morgan as Global Client Executive for the Financial Institutions, Healthcare and Federal Government franchise of Treasury Services. His first priority has been to meet with clients and hear directly from them about their challenges and needs. In the following conversation, he talks about his reasons for joining the firm, his passion for the franchise, and insights he’s gathered from talking to J.P. Morgan clients around the world.

Basel III implementation – Is the industry running out of time?

Back in December 2010, the Basel Committee published the Basel III global regulatory framework. In November 2011, the G20 Leaders emphasized the importance of implementing Basel III fully and consistently in order to improve banks’ resilience to financial and economic shocks.

A Delicate Balance: Asia’s Opportunities and Challenges

Economies in Asia are recovering from the global financial crisis with greater ease than their counterparts in Europe and the US. Opportunities are still abundant across the region, but significant challenges remain, writes Pravin Advani, Global Trade Executive, Asia Pacific at J.P. Morgan.

In-House Banking: Making it Work in Asia

Long-established amongst leading US and Western European corporations, the in-house bank structure is now becoming a hot topic in Asia.

Operating in a challenging regulatory environment

In today’s complex business deals, escrow agreements are often the last item to be negotiated. Yet, their place on the checklist should not negate their importance as a critical risk mitigation tool   one that can give all parties in a deal an added level of comfort.

SEPA End Date Set for 1 February 2014

In today’s complex business deals, escrow agreements are often the last item to be negotiated. Yet, their place on the checklist should not negate their importance as a critical risk mitigation tool   one that can give all parties in a deal an added level of comfort.

Centralization Strategies for Insurance and Asset Management Firms

In today’s complex business deals, escrow agreements are often the last item to be negotiated. Yet, their place on the checklist should not negate their importance as a critical risk mitigation tool   one that can give all parties in a deal an added level of comfort.

Market Issues: Perspectives from Transaction Services Banks Globally

In today’s complex business deals, escrow agreements are often the last item to be negotiated. Yet, their place on the checklist should not negate their importance as a critical risk mitigation tool   one that can give all parties in a deal an added level of comfort.

Does The Risk Return Equation Still Hold?

Financial stresses can develop a life of their own, as the aftershocks of 2008 evolved into sovereign concerns. Various banks continue to face challenges, with questions arising from their own financial exposures and resiliency, coupled with increasing regulatory obligations. This has compelled corporates, even as their cash balances rise, to revisit their banking strategies, with increased emphasis on counterparty quality and contingency capacity. Fortunately, as David Li, Head of Liquidity, Asia Pacific at J.P. Morgan Treasury & Securities Services explains, there are still ways in which both risk and return can be managed.

Five Crucial Steps to a Successful Escrow Agreement

In today’s complex business deals, escrow agreements are often the last item to be negotiated. Yet, their place on the checklist should not negate their importance as a critical risk mitigation tool   one that can give all parties in a deal an added level of comfort.

Leading The Way With ECAs

With the International Monetary Fund forecasting 7% growth in Asian Gross Domestic Product in 2012 and beyond, having the right infrastructure in place to support this growth is vital.

Mitigating Risk, Maximising Opportunity for International Trade

As this article outlines, there is now the opportunity to mitigate these risks while still capitalizing on the advantages of open account trade. The answer comes in the form of a new financial instrument called Bank Payment Obligation (BPO) through SWIFT’s centralized automated data matching engine – Trade Services Utility (TSU).

Meeting the Challenges of International Trade

Bankers have been helping buyers and sellers conduct global trade for centuries, but today’s trade finance providers are being asked for a different kind of help. As trade flows have grown and new markets have opened, buyers and sellers have expressed a need for faster, more efficient ways to fund and manage their trade activities. Providers are now on notice to help their customers simplify and streamline trade-related business processes that until recently were paper-based, labor-intensive, and costly.

More Than a Penny Stamp

Upcoming Changes at the U.S. Postal Service May Impact Your Bottom Line. It recently raised the cost of a first class stamp by one cent for first class mail. But that was just one of many changes the Postal Service plans to introduce this year. Recent headlines have heralded the drastic measures the U.S. Postal Service plans to take in 2012 in their efforts to trim their expenses and streamline their operations.

The View from Japan: Q&A with Country Manager Hans Janssens

TS “Global News & Views” recently interviewed Hans Janssens, Managing Director and Country Manager for Treasury & Securities Services in Japan. Hans, who has been with J.P. Morgan for 17 years, has lived and worked in Japan for more than 20 years. Here he offers his perspectives on the issues facing corporations either based in Japan or conducting business there.

Chinese Lessons: Avoiding the Liquidity Trap

The rapidly growing Chinese market offers significant expansion opportunities for foreign corporates, but also substantial risks for treasury managers, unaware of China’s unique circumstances. Michael Nelson and Sarah Zhou of J.P. Morgan Treasury Services highlight the key pitfalls to avoid, and suggest strategies to optimize a corporate’s liquidity management in this challenging emerging market.

To Build, Buy or Ally

How best can banks support their clients in expansion mode? Do banks build, buy or ally to align with client needs and ambitions? J.P. Morgan gathered leading bankers to debate the drivers, challenges and best practice behind financial institution partnerships.

Doing Business in India

Learn how J.P. Morgan’s long-standing presence in India can help you do business in that country.

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