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CBS-4 Treasury & Capital Markets
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This chapter examines AmBank’s Critical Business Service CBS-4: Treasury & Capital Markets through the lens of operational resilience. Treasury and capital markets activities sit at the core of a bank’s financial stability, liquidity management, and market confidence.
Disruptions to these services—whether arising from system failures, market volatility, cyber incidents, or third-party dependencies—can have immediate and systemic implications not only for AmBank, but also for its clients and the wider financial ecosystem.
As such, understanding the structure and interdependencies of these services is essential to building resilience.
Purpose of the Chapter
The purpose of this chapter is to break down CBS-4 into its detailed Sub-Critical Business Services (Sub-CBS) and articulate how each contributes to the end-to-end delivery of treasury and capital markets outcomes.
By presenting these Sub-CBS in a structured manner, the chapter enables readers to appreciate the operational complexity behind trading, funding, risk management, and market operations, and to recognise why these services are designated as critical under an operational resilience framework.
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Table P1: Detailed Processes for CBS-4
|
Sub-CBS Code |
Name of Sub-CBS |
Description of Sub-CBS |
|
4.1 |
Foreign Exchange (FX) Trading |
Execution and management of foreign currency transactions for clients and the bank’s own positions, including spot, forward, swaps, and currency risk hedging strategies. Ensures liquidity and efficient FX risk mitigation for corporate, institutional, and interbank customers. |
|
4.2 |
Interest Rate & Money Market Trading |
Management of interest rate exposure and money market instruments. Involves trading government securities, negotiable instruments, and money market placements to optimize interest rate risk and funding costs. |
|
4.3 |
Derivatives & Structured Products |
Structuring and execution of derivatives (e.g., FX derivatives, interest rate swaps, options) and bespoke structured products for hedging or investment purposes, tailored for client requirements and ALM needs. |
|
4.4 |
Fixed Income & Debt Instruments Trading |
Buying, selling, and market-making in fixed income securities, including government bonds, corporate bonds, and sukuk, supporting liquidity management and investment strategies. |
|
4.5 |
Capital Markets Origination & Syndication |
Origination, structuring, and distribution of capital markets products, such as corporate bonds and sukuk, syndicated loans, and leveraged finance structures. Facilitates client access to capital funding and AmBank’s market footprint. |
|
4.6 |
Debt Capital Market (DCM) Solutions & Advisory |
Advisory functions including debt structuring, pricing, underwriting support, project financing, and bespoke capital-raising solutions for corporates, institutions, and GLCs. |
|
4.7 |
Asset Liability & Balance Sheet Management (ALM) |
Measurement and management of balance sheet risk, including liquidity, interest rate risk, funding optimization, and regulatory compliance reporting. Ensures the bank’s solvency and liquidity buffers are resilient. |
|
4.8 |
Market Risk Analytics & Reporting |
Continuous risk analytics, valuation models, market surveillance, and regulatory reporting for all market exposures across treasury and capital markets. Provides data for risk limits, stress testing, and strategic decision-making. |
|
4.9 |
Post-Trade & Settlement Operations |
Confirmation, settlement, and reconciliation processes for executed trades. Ensures settlements occur accurately and timely across FX, fixed income, derivatives, and capital markets transactions. |
|
4.10 |
Regulatory & Compliance Governance |
Ensuring compliance with Bank Negara Malaysia (BNM), Bursa Malaysia, and international market regulations (MFRS/IFRS, reporting standards), trade reporting, and audit requirements applicable to treasury & capital markets activities. |
|
4.11 |
Client Relationship & Sales Support |
Client engagement services, including sales coverage, customized market insights, product recommendations, and servicing for corporate and institutional treasury clients. |
Notes for Operational Resilience Integration
- Subsidiary Processes (Sub-CBS) should align with both operational risk and client continuity perspectives, ensuring that disruptions in one area (e.g., FX operations) do not cascade across the bank’s financial markets functions.
- Typical cross-functional dependencies relevant to operational resilience include IT systems (trading platforms), data feeds/market data, risk management tools, and settlement networks — all of which should be considered when mapping business process resilience.
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This chapter provides a systematic decomposition of CBS-4 Treasury & Capital Markets into its constituent Sub-CBS, including foreign exchange trading, money market activities, fixed income and derivatives trading, capital markets origination, asset-liability management, market risk analytics, post-trade settlement, and regulatory governance. Each Sub-CBS is described in terms of its role, scope, and contribution to AmBank’s ability to meet client obligations, manage balance-sheet risk, and operate effectively in financial markets.
In doing so, the chapter establishes a clear service-based view of treasury and capital markets operations, moving beyond organisational silos or departmental structures. This service-oriented perspective supports subsequent operational resilience activities, such as identifying important business services, mapping resources and dependencies, setting impact tolerances, and designing disruption scenarios that reflect real market and operational stresses.
In conclusion, this chapter lays the foundation for operational resilience planning by clarifying what constitutes Treasury & Capital Markets as a critical business service at AmBank and how it is delivered through distinct yet interdependent Sub-CBS. By understanding these services in detail, readers are better equipped to assess vulnerabilities, prioritise resilience investments, and ensure that critical market-facing services can continue within acceptable impact tolerances during severe but plausible disruptions. This clarity is essential for translating regulatory expectations on operational resilience into practical, actionable outcomes for the bank.
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Gain Competency: For organisations looking to accelerate their journey, BCM Institute’s training and certification programs, including the OR-5000 Operational Resilience Expert Implementer course, provide in-depth insights and practical toolkits for effectively embedding this model.
More Information About OR-5000 [OR-5] or OR-300 [OR-3]
To learn more about the course and schedule, click the buttons below for the OR-300 Operational Resilience Implementer course and the OR-5000 Operational Resilience Expert Implementer course.
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