Corporate Finance - A Common Sense Approach to Creating Competitive Advantage

Mark Moss, Director Corporate Asset Finance, Lloyds TSB Corporate Markets

In the past, banks’ primary risk consideration was return on capital. Today,the efficient use of capital has become a priority; however, risk and reward need to be balanced as part of any financial decision, whether bank or corporate. As part of the risk management process, banks and their corporate customers are developing closer relationships, so that each party better understands the risks and requirements of the other. This is not a “one way” process; just as banks need to be assured that they will receive back money they have lent, counterparty credit risk is equally a concern for corporate treasurers.