There is growing demand among Japanese companies to have a robust cash management structure that covers their global operations so that they might conform to new J-SOX compliance requirements, says Citi.
Clients will have enhanced visibility of global cash positions, stronger risk management and security, and more efficient cash utilisation.
"Many Japanese blue-chip companies have established good control over local company subsidiaries but they could improve controls over their global operations. We are trying to help these clients to establish these stronger global operations,ö says Hiroyuki Soejima, treasury and trade services head at Citi in Japan.
ôOracle applications cover risk management, FX, interest rate and credit risk. Citi meanwhile offers cash management solutions, so putting these together will help provide clients with an end-to-end solution.ö
Clients will have direct access to local clearing systems in international markets, resulting in faster payments at low cost and reduced risk. This, says the bank, will also help to optimise cash efficiency.
Around 3,800 Japanese listed companies are now required to comply with new rules on internal controls and financial reporting.
Rising direct foreign investment in Japan has also benefited major foreign banks as they tend to provide cash management services to international corporate clients, leveraging their global expertise.
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