SWIFT and Zanders Web Seminar on Working Capital Management

A wide audience from banks and corporates listened in on the first Swift Webinar.

SWIFT and Zanders Web Seminar on Working Capital Management

A wide audience from banks and corporates listened in on the first Swift Webinar (30 March 2011). Bas Rebel, executive consultant at Zanders explained what impact the 2008 credit crisis and the new Basel III regulations can have on corporate working capital. He highlighted that in the past two years the cash conversion cycle slowed […]

A wide audience from banks and corporates listened in on the first Swift Webinar (30 March 2011). Bas Rebel, executive consultant at Zanders explained what impact the 2008 credit crisis and the new Basel III regulations can have on corporate working capital. He highlighted that in the past two years the cash conversion cycle slowed down to levels not seen in 10 years, while credit spreads have increased considerable since. These fact signal higher risk and funding cost for corporates. Many corporates however report increased liquidity mainly as a result of lower turnover. Zanders WCM survey 2010 calculates that 4,127 companies under review combined could have released EUR 93.3 Billion additional liquidity if their cash conversion cycle had not slowed down with 2.4 days worth of sales. 

Counterbalancing the impact of Basel III in terms of cost and availability of credit, banks and their clients should collaborate and innovate processes and supply chain financing across their industries verticals.

Both banks and corporates could leverage their investment in Swift connectivity and benefit from the Swift network reach and product building blocks as developed and piloted in de past few years. David Hennah, Product Manager, Trade & Supply Chain solutions at SWIFT, introduced the audience to the Trade Service Utility (TSU) and the Bank Payment Obligation (BPO) currently under accreditation review by the ICC. Both instruments are already used by banks predominantly for supply chain financing of international open account trading. David Hannah explained how these instruments could also be used e.g. for improving efficiency of factoring and reverse factoring schemes in terms of cost and transparency. 

The webinar was concluded by a panel discussion and responses to questions raised by the audience moderated by Ben Poole, chief editor for gtnews.
The webex can be downloaded from SWIFT.