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CHAPTER 1
INTRODUCTION TO TREASURY MANAGEMENT FOR FINANCIAL SERVICES INSTITUTIONS / LIQUIDITY AND CASH MANAGEMENT

Treasury Management of Financial services Institutions
Definition of Financial Services
Financial services refer to economic services provided by the finance industry. The finance industry encompasses a broad range of organizations that manage money, including credit unions, banks, credit card companies, insurance companies, consumer finance companies, stock brokerages, investment funds and some government sponsored enterprises.
In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries. Most financial institutions are regulated by the government
Broadly speaking, there are three major types of financial institutions: 1. Depositary Institutions : Deposit-taking institutions are institutions that accept and manage deposits and make loans, including banks, building societies, credit unions, trust companies, and mortgage loan companies 2. Contractual Institutions : Insurance companies and pension funds; and 3. Investment Institutions: Investment Banks, underwriters, brokerage firms.

Definition of Treasury Management
Treasury management (or treasury operations) is defined as management of an organization or a firm, with the ultimate aim of maximizing the firm's liquidity and mitigating or reducing its financial risks (reputational risk, credit risk, liquidity risk, interest rate risk, exchange rate risk, operational risk, market risk etc.) Treasury Management includes a firm's cash management (collections of cash, disbursements of cash, and concentration of cash), raising equity and debt capital, investing surplus funds and funding activities. In

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