Liquidity management: Navigating volatility, regulation, and technological change
Abstract
The European liquidity management landscape is undergoing a fundamental transformation. Once anchored in predictable conventions and stable relationships, the ecosystem now faces a convergence of macroeconomic volatility, sweeping regulatory reform and rapid technological innovation. This paper provides a detailed analytical examination of these shifts, exploring the evolving interdependencies between banks, corporates and payment service providers (PSPs). Key themes include the impact of persistent inflation, fluctuating interest rates and geopolitical uncertainty; the far-reaching effects of regulatory reforms such as the third Capital Requirements Regulation, the Instant Payments Regulation, and the proposed third Payment Services Directive and Payment Services Regulation; and the accelerating adoption of real-time payments, data automation and digital treasury solutions. Through practical examples, operational analysis and actionable recommendations, this paper equips finance professionals, treasurers, bankers and PSPs to navigate the evolving European liquidity management environment and prepare for the challenges and opportunities ahead. This article is also included in the Business & Management Collection which can be accessed at http://hstalks/business.
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Author's Biography
Joost Bergen is the founder of Cash Dynamics BV. Over the past 25 years, he has collaborated with many corporate and transaction banks on the pivotal role of technology in creating long-term value and liquidity efficiency. He delivers training for corporate and transaction banks, as well as to financial professionals and treasurers, focusing on liquidity, cash management, working capital, innovation and digitisation. He also moderates the Liquidity Management working group of the Euro Banking Association and holds several non-executive positions.
