COVID 19 Treasury Survey, Autumn 2020

Requirements for treasury departments due to the COVID 19 crisis

In many ways, 2020 will go down in history as a special year. Of course, the entries in the world's history books will be shaped by the prevailing pandemic and its impact on humanity. But there are also economic implications. Immediate and long-term in nature.

A survey of selected treasury departments using our TMS solution corima revealed a completely heterogeneous picture. This is shown by the example of liquidity requirements:

From "everything as it was" to "negative interest rates and where to put the liquidity", pretty much all answers were represented. Higher volatilities and the associated poorer ability to plan the business were also noticeable.

The serious factor is almost exclusively the business development in the company. Since spring 2020 this could lead to increased or even reduced liquidity requirements.

All our customers are unanimously aware that banks are much more sensitive. However, a majority also found the requirements in connection with carrying out their own activities in the home office to be a particular challenge.

The monitoring of short-term liquidity and the reliability of the systems was a consistently relevant factor. A quick overview, for example via a dashboard, was described as very helpful.

Our conclusion: In crises and special situations, treasurers can only benefit from the experience of others to a limited extent, as even within one industry the effects on daily business can develop diametrically. The main driver is business development, far ahead of the developments on the financial markets. One thing is certain: a clear view of the liquidity situation is the basis for safe trading. corima offers demand-oriented liquidity planning, the key facts of which are permanently updated and available in an integrated dashboard.