Big Fat Finance Blog

About This Blog Updated daily by members of the Business Finance Expert Network, The Big Fat Finance Blog is intended to arm finance professionals with innovative ideas and best practices that help finance organizations create value.

Basel III’s Impact on Corporate Treasury

There’s little question, the goings-on taking place in Basel, Switzerland, over the summer and last month, culminating in what’s often referred to as the Basel III Accord, will significantly impact financial institutions. What about corporate treasurers? To find out, I talked with Tony Carfang, partner and director with Chicago-based Treasury Strategies. His take: “The regulations that come down on banks will flow through to the banks’ customers.” Moreover, the impact likely won’t be positive, Carfang notes.


Among other changes, the agreement reached by the Basel Committee on Banking Supervision, as outlined here, would boost the minimum requirement for common equity held by banks from 2 to 4.5 percent by 2015. The Tier 1 capital requirement would jump from 4 to 6 percent over the same period. more

A “Dear CEO” Advice Column You May Want to Read

Self-help books and newspaper advice columns, such as the famous Ann Landers column, are prevalent for issues involving relationships, money, or etiquette. What if there were an advice column for CEOs?


Dear CEO:


I am a relatively capable midlevel manager in my mid-40s. I have worked for my employer for 10 years. During the last few years, our company has been losing market share and declining in profits. Our executive team tries to talk a good game with quarterly town hall meetings with employees, but they appear to show no interest in implementing any of the core methodologies of an enterprise performance management framework, like strategy maps, customer profitability analysis, or driver-based budgeting. Some of our executives openly ridicule these managerial techniques and say that real managers just need good old common sense and instinct, not fact-based information. What can I or my co-workers do to encourage our executives to be more innovative?


– Confused and Dismayed


Dear Confused and Dismayed:


Executive teams are one of the more interesting social groups for research and behavioral study. Even the most talented executive teams fail to reach their full potential due to their lack of trust and confidence in one another and the inevitable conflicts, reduced commitment, and avoidance of accountability that result from mistrust. more

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