This lesson covers the strategic management of banking relationships, a core function of treasury operations. 

6.1. The Strategic Importance of BRM

Bank relationship management is the process of selecting, managing, and evaluating relationships with financial service providers.  The Vrije Universiteit Amsterdam course includes “bank relationship management” as a central theme, requiring students to know “how to communicate as treasurer with investors and bankers.” 

6.2. Selecting and Managing Banking Partners

Effective BRM involves:

• Evaluating and Selecting Financial Service Providers: Using a Request for Proposal (RFP) process to select banks based on service capabilities and pricing. 

• Managing Bank Performance: Setting KPIs and conducting periodic reviews.

• Negotiation: Negotiating pricing and service levels.

• Managing Credit Lines: Negotiating and managing syndicated agreements and credit lines. 

6.3. Key Account Management

Relationship managers play a key role in providing client services and identifying business opportunities. Training programmes like the Emirates Institute of Finance’s Certificate in Relationship Management cover “Art of Cross Selling,” “Treasury Solutions for Relationship Managers,” and “Cash Management and Transaction Banking.”