The facts

• Guaranteeing that BNP Paribas is able to honour its commitments to clients and counterparts on the financial markets
• Mitigating foreign exchange and interest rate risks
• Over 200 staff across 30 locations

Introduction

Asset Liability Management (ALM) and Treasury is responsible for BNP Paribas’s liquidity strategy and market risk – exposure to interest rate and currency movements. Professionals within ALM and Treasury ensure that BNP Paribas CIB always has sufficient liquidity to honour its commitments to clients and counterparts, providing the funding to meet cash requirements and placing cash surpluses.

ALM and Treasury has three core functions:

• the management of the Group’s liquidity and its benchmark price in the markets
• the management of operational and structural foreign exchange risks
• the management of interest rate risks in the balance sheet

BNP Paribas’s increasingly global presence means that assets and liabilities are held in a wide range of currencies, and transactions are made in different markets and across varying maturities. At the same time, regulatory pressures mean that accuracy and rigour in cash management are more important and more sophisticated than ever before. The ALM and Treasury function serves to ensure that the business has not only enough liquidity to meet its operational commitments but also to satisfy the prudential requirements of each market in which it operates. At the same time it works to assess and mitigate the risks associated with exchange rate volatility and client and counterparty actions when operating across multiple currencies and jurisdictions, and to understand the impact of interest rate changes on the banks assets and liabilities.

ALM focuses on longer-term financing needs while Treasury manages short-term funding, including intra-day liquidity management and cash clearing.