Treasury

1. Corporate organisation and management.

A corporate function concerned with financial risk management, funding, cash and liquidity management, and corporate financial management.

The individuals who work in this function are known as corporate treasurers.

Corporate treasurers' high-level priorities - avoid insolvency - manage profitability implications - be productive with resources provided by the organisation - be aligned with organisational strategy

"(1) Treasury is responsible for ensuring the organisation avoids insolvency. Many functions are involved with setting terms of trade and with collections and payments. Treasury is the only function responsible for bridging the gap between outflows and inflows.

(2) Treasury is responsible for managing the associated gain and loss implications. Borrowing and lending – and different ways of paying and receiving – create major risks of losses or, conversely, opportunities for gain. These have a major impact on profitability. BUT, fellow treasurers, lest we forget, we only SUPPORT the company’s profitability, we don’t make it. When we get stuck into our banking products, we often forget that (pooling?)

(3) Treasury is responsible for managing its own operational costs. Obvious, yes. But it leads to an interesting question that people need to know to understand their own treasuries. Why are some treasuries set up as profit centres and others as breakeven and cost centres?

(4) Treasury is responsible for its alignment with company strategy. Another obvious comment? Yes, but again… Many people say Treasury is part of finance, with the implication that treasury is in lockstep with other finance functions like accounting and FP&A/consolidation. This is not true – treasuries often have a difficult relationship with other finance functions."

What is treasury - Nicholas Franck AMCT, Treasury Executive - July 2024.

2. Financial services.

The internal function of a bank or other financial institution with responsibilities including funding, liquidity management, capital management and related regulatory compliance in these areas.

3. Central government - UK.

The UK government department reporting to the Chancellor of the Exchequer which - among its other duties - is responsible for His Majesty's Revenue & Customs.

Also known as HM Treasury.

4. Central government - United States.

The US government department whose responsibilities include promoting the conditions that enable economic growth and stability in the US and abroad, strengthening national security by combating threats and protecting the integrity of the financial system, and managing the US government’s own finances and resources.

5. Other countries.

Comparable government departments in other countries.

6. Tradeable debt.

A treasury security.

See also

• Asset-liability management
• Association of Corporate Treasurers
• Business
• Cash management
• Consolidation
• Corporate financial management
• Corporate treasurer
• Corporate treasury
• Cost centre
• Debt ceiling
• Debt Management Office
• Finance
• Financial institution
• Financial markets
• Financial planning and analysis (FP&A)
• Financial services
• Funding
• Guide to risk management
• His Majesty's Revenue & Customs (HMRC)
• HM Treasury
• Insolvency
• Internal Revenue Service (IRS)
• International Group of Treasury Associations (IGTA)
• Liquidity management
• National security
• Profit centre
• The Treasurer
• Treasurer
• Treasury 4.0
• Treasury bills
• Treasury bonds
• Treasury Committee
• Treasury counterparty
• Treasury inflation-indexed securities
• Treasury inflation-protected securities
• Treasury infrastructure
• Treasury management
• Treasury Management System
• Treasury notes
• Treasury operations
• Treasury organisation
• Treasury policy
• Treasury procedures
• Treasury risk
• Treasury securities
• Treasury shares
• Treasury STRIPS
• Treasury yield
• Treasury workstation

Other resources

• What is corporate treasury? - Association of Corporate Treasurers
• What is treasury - Nicholas Franck AMCT, Treasury Executive - July 2024
• HM Treasury in the UK government - about us
• The history of HM Treasury in the UK - Institute for Government
• The US Department of the Treasury - about us