"One lesson of the crisis can be the better awareness of the importance of liquidity management"

Interview with Shiwao Nogawa, Head of Treasury, Asia ex-Japan

How did Calyon's treasury have to adapt to the liquidity crisis?

With the crisis, the emphasis was on the management of liquidity. Regarding Calyon, even before the crisis, the treasury product line was organised to manage the liquidity efficiently. That is why Calyon did not face major issues. Since the beginning of the crisis, the bank has implemented various costs for the liquidity users, including the short term liquidity costs, which puts treasury more on the front line. We have made efforts to explain transparently to the business lines the necessary need for such costs during the crisis.
The better awareness of the importance of liquidity management and the better understanding of the role of treasury can be two lessons from the crisis.

How do Calyon's treasurers work with the other business lines and entities of the bank?

Treasurers of each local branch are in charge of managing their short term cash liquidity. In order to be efficient, they work closely with other business lines to make sure the branch can manage the funding of Calyon’s assets. We have to be always aware of the need for funding for every business line. Regular communications with the users of the funds is the key for the sound management of the bank’s liquidity. Our duty is to reflect the current money market conditions within each local market’s constraints to our internal refinancing price, both for loans and deposits. This process also contributes to gain credibility finally towards our clients.

What are Calyon's objectives in terms of treasury in the region?

Our aim is to diversify the group’s sources of liquidity. Asia is a good example to estimate Calyon’s improvements in the area. For historical reasons, plain vanilla deposits are not seen as  Fixed Income Markets (FIM) products in the region. However, considering their specificities and Calyon’s efficient cross-selling, these deposits can be used as FIM products. They are excellent entry points to open the relationship with our clients, given Calyon’s strong expertise. Thanks to their professional knowledge, FIM sales add value to this relationship by feeding market information and proposing alternative solutions to clients’ needs. Our continued objective is to raise more liquidity directly from our clients.

Shiwao Nogawa, Head of Treasury, Asia Ex-Japan

Shiwao Nogawa, Head of Treasury, Asia Ex-Japan