Master of Business Administration -MBA Semester 4MF0016 – Treasury Management Assignment Set- 1Q.1 Explain how organization structure of commercial bank treasury facilitates in handling varioustreasury operations.Ans:-
The treasury organisation deals with analysing, planning, and implementing treasury functions. It dealswith issues of profit centre, cost centre etc. The organisations managing interfaces with treasury functionsinclude intragroup communications, taxation, recharging, measurement and cultural aspects.
Structure of treasury organisation
Figure 1.2 depicts the structure of treasury organisation which is divided into five groups.
Figure 1.2: Treasury Organisations
Fiscal – This group includes budget policy planning division, industrial and environmental division,common wealth state relationships, and social policy division.•
Macroeconomic – This group deals with economic sector of the organisation. It includes domestic andinternational economic divisions, macroeconomic policy and modeling division.•
Revenue – This group is concerned with the taxes in an organisation. It includes business tax division,indirect tax, international and treaties division, personal and income division, tax analysis and tax designdivision.•
Markets – This group mainly deals with selling of products in the competitive market. It includescompetition and consumer policy, corporations and financial services policy, foreign investments and tradepolicy division.•
Corporate services – This group deals with overall management of the treasury organisation. Itincludes financial and facilities division, human resource division, business solutions and informationmanagement division.