Treasury of bank is considered to be a service center that takes care of funds management. However with the liberalization of financial markets, the scope of treasury functions has been expended and it has now become a profit center having trading activities.
Basic Role of Treasury :
i) Liquidity management : Management of short-term funds, CRR, SLR.
ii) Proprietary positions : Trading in securities / currencies and other financial instruments.
iii) Risk Management : Bridging asset – liability mismatch.