Core functions of Treasury Operations in Bank
The core areas of treasury operations in a bank can be functionally divided into the following broad compartments as mentioned below:
Front Office Operations (Dealing room operations);
Middle Office Operations (Market Risk Department / Product Control Group); and
Back Office Operations (Deal Confirmation and Settlement).
Increasing regulation and compliance requirements and the need for risk management have made ‘treasury front and back office efficiency’ as one of the most critical factors in ensuring the well-being of any bank today. This is certain to continue as the operations of treasury becomes more onerous while financial products become increasingly complex, despite streamlining of processing systems.