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Finance & Banking vocabulary · Treasury & Markets

Treasury

Meaning in finance & banking, with examples

/ˈtreʒəri/nounCommon term

In finance & banking, treasury means: The department of a bank or company that manages its cash, liquidity, funding, foreign exchange and interest rate risk; also the government ministry in charge of public money.

In Turkish: hazine, hazine bölümü

How it is used

In a bank, treasury runs the money market and FX desks and manages the balance sheet through asset-liability management (ALM). Corporate treasurers handle a company's cash and hedging. With a capital T, the Treasury is a government body, such as HM Treasury in the UK. US government bonds are called 'Treasuries'.

Example sentences

  1. Treasury has asked branches to focus on longer-term deposits this month.

  2. He started his career on the FX desk in the bank's treasury.

Common collocations

  • treasury department
  • treasury desk
  • corporate treasury
  • asset-liability management
  • treasury bills
  • liquidityHow easily an asset can be turned into cash without losing value, or how much cash and easily sold assets a bank or company has to meet its payments.
  • foreign exchangeThe buying and selling of currencies, or foreign currency itself. It is often shortened to FX or forex.
  • hedgeTo reduce the risk of losing money from changes in prices, interest rates or exchange rates, usually by taking an opposite position with derivatives.
  • repoShort for repurchase agreement: a deal in which one party sells securities and agrees to buy them back later at a higher price, which works like a short-term secured loan.
  • swapA contract in which two parties exchange cash flows or currencies for a period, such as fixed interest payments for floating ones.

More terms: Treasury & Markets

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This page explains English vocabulary for learners. It is not financial advice.