The Solution Of Commercial Bank To The Global Cash Management Of Chinese Transnational Corporatons

The tendency of globalization becomes stronger along with the coming of the 21thcentury. With the speedy development of modern market economy in china ,a great deal of Chinese enterprises go global to capture more opportunities in the overseas market. Given a tremendous unfulfilled need for risk management solutions and with the increasing challenge of competing in a global environment, Chinese Transnational Corporations (CTNCs) are requiring more sophisticated and effective asset and liability management tools to reduce their funding costs and financial risks as well as to increase cash management flexibilities. At the same time some Chinese comercial banks are searching for cooperation with These CTNCs in the aspect of cash management service, addressing the need for global professional service in the untapped market. In this essay, an introduction of the beginning and the development of cash management will be given, which brought by the demonds from enterprises for managing cash flow. Then, the present state and demonds of CTNCs' cash management will be introduced. Furthermore, the writer take a demonstration analysis on cash management operating solution which has been provided to a famous national Transnational Corporation by a certain commercial bank.it also has a further discussion on how to optimized and improved the, cash management solution . Finally,built on the researching and analyzing above,and combined with the case,a total solution through bank-bank interlink program will be raised. Bank-bank interlink means that two or more computer systems of the different commercial banks are linked together through cash management system,so the Chinese commercial bank can exchange more information with its partner banks directly. As part of the solution, bank accounts of the CTNCs' overseas units have been opened at the branches of a certain Chinese comercial bank or itspartner banks, and the computer financial software system or ERP system has been installed in both the headquarters and overseas units so that the headquarters can effectively and directly monitor and control the financial situation of its overseas branches through bank-enterprise interlink. The solution has a detailed clarification from seven aspects of the global payment management,gathering management, the management of flowing cash,investment management, financing management, risk management, and the information services.it would also utilize the bank's worldwide cash management expertise with an aim to help the CTNCs reducing their financial risks and achieving higher investment returns.