Regulation Forces Corporates Become Banks

Keeping eyes and ears open
for the corporate perspective

I talk to treasurers and many of them realize that in the future they will not any more be able to rely on the banking system for funding. Basically all funding needs to come from the capital markets, through working capital management and own cash generation. Decreased leverage is therefore a trend that will continue. As one peer puts it: "Cash sourcing will be the big issue in the future, the cash is no longer available in the places we have been used to. The treasurers job will be to re-invent the way we secure cash." For the large and cash rich corporates that is further challenged since they also have to consider that the strongest part of the supply and demand chains needs to take a much stronger role in financing. 

Pushing through the
regulatory glass walls

Thus Regulation Forces Corporates Become Banks.

When regulation is putting banks in the role of being cheap ATMs for the public sector, it is time for a Radical Rethink. We will continue presenting more players reinventing the financial system for corporates, a system where banks play a much smaller role than yesterday. The corporates will push the glass walls .

The regulators and ruling elite need to understand the corporates are pragmatically adapting to reality, not trying to change it. The regulators and ruling elite have therefore a huge responsibility to create rule sets benefitting growth and prosperity of the corporate sector. 

Join ETPG's group on LinkedIn