Learning Objectives:

  • Identify short-term and long-term funding options.

  • Understand the role of money markets and capital markets.

  • Explain the impact of regulatory requirements on funding.

6.1 Short-Term Borrowing and Investment
Treasuries manage short-term funding through bank borrowings, commercial paper, and money market instruments . Investment strategies are also important for managing surplus cash effectively. Money market funds and other short-term investment vehicles are commonly used . The Cambridge for Global Training course covers short-term investment vehicles for surplus funds as a core topic .

6.2 Long-Term Funding
Long-term funding sources include bonds, term loans, and equity capital. Corporate treasuries must understand the structure of debt and equity financing and their associated costs and risks . The Vrije Universiteit Amsterdam course includes “Financial Markets, Lending and Investments” in its curriculum .

6.3 Regulatory and Tax Environment
Bank funding and treasury operations are subject to regulatory and tax requirements . Basel regulations impact capital adequacy and the cost of funding. Tax aspects must also be considered in funding decisions .

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