Integration's primary goals are to increase portfolio profitability, risk mitigation, and asset synergy between banking and trading. Trading assets are retained largely for the purpose of making profits on short-term disparities in prices and yields, while banking assets are held primarily for client relationships, consistent income, and statutory duties and are typically held until maturity. The goal is accomplished through effective money management, cost-effective liability sourcing, appropriate transfer pricing, taking advantage of arbitrage opportunities, online and off-line information sharing between money and forex dealers, single point of contact for customers, efficient MIS, improved internal control, risk minimization, and better regulatory compliance.
An
integrated treasury serves as a hub for hedging and arbitrage activities. In order to maintain a proactive profit center, it aims to maximize its currency portfolio and allow for unrestricted transfers of
money
between other currencies. Banks with integrated treasuries will have the opportunity to develop
multi-currency balance sheets and benefit from strategic positioning as a result of the incremental
liberalization of capital account convertibility.