TP TMI key terms

The practice of estimating future cash inflows and outflows over daily, weekly, and longer horizons so that funding, investment, and liquidity decisions are made before balances actually move.

A structure that combines balances across accounts or entities, either physically transferring funds (zero balance) or notionally offsetting them, to reduce overdrafts and improve interest results.

A bank arrangement where credit and debit balances of participating accounts are offset for interest calculation without any actual transfer of funds between the accounts.

A treasury structure inside a group that centralizes cash, funding, and foreign exchange dealings with subsidiaries, so the group deals with external banks through a single internal counterparty.

A centralized unit that executes and controls payments on behalf of group entities using shared systems, standardized processes, and consolidated bank connectivity.

The periodic offsetting of payables and receivables between group companies so that only the net residual balance is settled, reducing transaction volume and FX conversion costs.

The process of closing redundant bank accounts and consolidating the remaining ones under clear ownership, mandates, and signatory controls to reduce risk and administrative cost.

Layered safeguards such as segregation of duties, dual authorization, callback verification, and beneficiary validation designed to prevent unauthorized or fraudulent outbound payments.

A holding of high-quality liquid assets or committed undrawn facilities kept to meet obligations during stress, sized against projected outflows and stress-test results.

A regulatory metric requiring a bank to hold enough high-quality liquid assets to cover net cash outflows over a 30-day stress period, expressed as a percentage of those outflows.

Analysis of how a portfolio, balance sheet, or liquidity position would perform under severe but plausible scenarios, used to size buffers and set risk limits.

A statistical estimate of the maximum loss a portfolio could suffer over a defined horizon at a given confidence level, widely used for market risk limits.

The exposure of earnings or portfolio value to movements in interest rates, arising from repricing mismatches, duration gaps, or floating-rate debt and investments.

The risk that a bank, derivative counterparty, or investment issuer fails to meet its obligations, causing loss on deposits, hedges, or securities held.

An independent agency opinion on an issuer's or instrument's ability to meet obligations, used to set counterparty limits and investment eligibility criteria.

A contract in which two parties exchange fixed and floating interest payments on a notional amount, commonly used to convert fixed-rate debt exposure into floating, or the reverse.

An agreement to exchange interest payments and principal in two currencies, used to hedge foreign currency debt or convert funding from one currency into another.

Accounting rules that let qualifying hedges record gains and losses in the same period as the hedged item, reducing income statement volatility from derivative fair value changes.

The sensitivity of cash flows, earnings, or balance sheet values to currency movements, classified as transaction, translation, or economic exposure depending on its source.

The blended required return on a company's debt and equity, weighted by target capital structure, used as the discount rate for investment appraisal.

The sum of future project cash flows discounted at an appropriate rate, less the initial investment; a positive result indicates value creation.

The discount rate at which a project's future cash flows have a net present value of zero, used to compare investment returns against a hurdle rate.

The difference in yield between a corporate bond and a comparable government bond, reflecting the issuer's default risk and market conditions.

A graph of bond yields across maturities for a given issuer or market, whose shape signals expectations about rates, growth, and inflation.

A measure of a bond's price sensitivity to interest rate changes, expressed in years; a duration of five implies roughly a 5% price move for a 1% yield change.

A governing document that sets objectives, permitted instruments, credit limits, diversification rules, and reporting requirements for managing surplus cash and investments.

A pooled vehicle investing in short-term, high-quality debt instruments that offers daily liquidity and is used for parking surplus cash, with either constant or floating net asset value.

Software that consolidates bank balances, executes and tracks deals, manages debt and investments, and produces cash forecasts and accounting entries for the treasury function.

Use of the SWIFT network and standards such as MT and ISO 20022 messages to exchange payment, statement, and confirmation data securely with banks.

A direct, often file-based link between a company's systems and a bank's platform for automated payment submission and statement retrieval, bypassing manual portals.

End-to-end automation of a transaction from capture to settlement and accounting without manual rekeying, reducing errors and processing time.

An international standard for financial messaging that defines structured, data-rich XML formats for payments and reporting, replacing older message standards over time.

The due diligence process by which financial institutions verify client identity, ownership, and risk profile before and during a business relationship.

Laws, regulations, and controls requiring institutions to detect, report, and prevent the movement of criminal proceeds through the financial system.

Automated checking of counterparties, beneficiaries, and transactions against government sanctions lists to block or escalate prohibited dealings.

A standard contract framework governing over-the-counter derivative transactions between two parties, covering netting, events of default, and close-out mechanics.

The board-approved framework defining treasury objectives, delegated authority, permitted instruments, limits, controls, and reporting lines for the function.

A quantified measure, such as forecast accuracy or cost per transaction, used to track whether treasury activities deliver agreed operational and strategic outcomes.