Treasury Business

Treasury Business


Functional Framework

IFIC Bank Treasury covers the following areas:

IFIC Treasury = Foreign Exchange > Fixed income securities > Asset Liability management > Money market

Regulatory Framework

IFIC Bank Treasury maintaining & monitoring the Regulatory matters provided by the regulatory body such as:

 

Cash reservation ratio (CRR)

Statutory liquidity ratio (SLR)

Foreign exchange risk management

Asset liability management

Basel III requirements (LCR & NSFR)

Money market Desk

Money Market Desk of IFIC Bank Treasury is a prominent market participant in Money Market, ensuring the banks liquidity, maintaining CRR & SLR requirements at minimum risk and cost to the Bank.

Depending on the Liquidity position of the Bank IFIC Treasury offers Different Money Market Product to Wholesale Market:

 

Call Market

Term market

Repo & Reverse repo

Short notice

Call lending/call borrowing

Term lending/ term borrowing

Reverse repo lending/ repo borrowing

Placement borrowing

Fixed Income Securities Desk

IFIC Bank Treasury’s Fixed Income Desk is engaged in Investment at securities issued by Bangladesh Bank and Bangladesh Government in different time horizon to diversify its investment portfolio. It also participate in trading Fixed Income Securities in secondary market.

Main Products of Fixed Income Securities Desk of IFIC Bank Treasury are:

Securities Issued by Bangladesh government

Treasury bill (T-Bills) 14,91,182,364 days

Treasury bonds (BGTB) 2,5,10,15,20 years

 

Securities Issued by Bangladesh bank

7,14,30 days bill

Foreign Exchange Desk

Foreign Exchange Desk quotes the rates of different foreign currencies (FC) and manages the fund in foreign currencies to maintain Net Opening Position (NOP) of the bank at required level. The purpose of Foreign Exchange Desk is to smooth the banks foreign trade/currency business operation by ensuring maximum profitability.

Foreign Exchange Desk of IFIC Bank Treasury offers different products to its customer and wholesale market:

 

Spot deals > buy/sale foreign currencies settled takes two days is called (spot) deal. Buy/sale settled may on the same day i.e. today (TOD) and on next day i.e. tomorrow (TOM).

 

Forward deals > buy/sale agreement of one currency with another currency at a specified rate on an agreed date in the future.

 

Swap Deals > exchange two currencies for a certain period and agree to reverse it on a future date at a fixed rate.

 

Corporate deals > FX desk manages FC funds for different corporate customers to fulfill their FC requirements.

 

FC Lending and borrowing > Foreign exchange desk takes FC deposit or place FC funds to other banks/FIs.

Asset Liability Management Desk

ALM desk analyses and prepares ALCO paper incorporating local and international economic trends and recommends balance sheet strategies as well as guides ALCO in changing lending and deposit rates. Basic ALM functions are:

 

Monitoring the balance sheet mix of assets and liabilities

Strategic liquidity management

Interest rate risk exposure management

Monitoring maturities of assets and liabilities

Management of mismatches between assets and liabilities   

Pricing of deposit and advance

Internal profitability measurements (FTP-fund transfer pricing management)

Regulatory compliance of short and long term solvency in balance sheet (LCR-NSFR)

Managing all regulatory ALM indicators prescribed by regulatory bodies.