Structural risk management

An initial model for trading risk

The recent financial crisis highlighted the importance of a robust liquidity and funding risk framework. International organizations such as the Basel Committee on Banking Supervision and the Institute of International Finance recommend the inclusion of liquidity costs and benefits in product pricing.

Read More

The art of implementation

Treasury management systems and project management

The success of a new treasury system stands or falls on its implementation. And the success of the implementation stands or falls on good project management.

But what exactly is good project management? And how does implementation take place generally speaking? We asked Laura Koekkoek, an experienced Zanders project manager.

Read More

Mortage interest

Abolition of tax relief on mortgage interest: a risk or an opportunity?

A discussion has been raging for years in the Netherlands about making cuts in tax relief on mortgage interest, but so far moves to alter the system have come to nothing. But this look set to change. The tax relief on mortgage interest was an item in every political party manifesto for the general election in June 2010 and everybody is talking about it.

A poll conducted by Maurice de Hond actually showed that a majority of the population favors altering the present scheme. The next step might be its complete abolition. Consultant Martijn de Groot explains how this could affect the risks of mortgage portfolios.

Read More

Expert opinion: Niek Nahuis

Public State Treasury Agency

The Dutch State Treasury Agency (DSTA) fulfills a special role: it manages the state’s debt and meets the state’s borrowing requirement. But what exactly happens within the walls of this arm of the Ministry of Finance?

Zanders interviewed Niek Nahuis, head of policy and risk management, to find out how the DSTA operates and how it manages risks during a crisis.

Read More

Value for valuation

The importance of determining the value of liabilities is increasing

When the financial world talks about market value, it usually concerns the asset side of the balance sheet. Asset managers are constantly determining the value of shares and bonds.

In turn, banks specialize in determining the value of loans and mortgages. But the market valuation of liabilities continues to receive little attention. This is about to change, however, because of the growing importance of accurately determining the current and future values of companies (which is, after all, the difference between their assets and their liabilities).

Read More