Impact of regulatory changes on strategic treasury operations in a post-COVID-19 world

Authors

  • Olayinka Abiola-Adams Independent Researcher, Lagos, Nigeria
  • Chima Azubuike Independent Researcher, Port Harcourt, Nigeria
  • Aumbur Kwaghter Sule Independent Researcher, Abuja, Nigeria
  • Richard Okon Reeks Corporate Services, Lagos, Nigeria

DOI:

https://doi.org/10.51594/gjabr.v3i1.73

Abstract

The COVID-19 pandemic has reshaped the global economic landscape, leading to significant regulatory changes that have had profound effects on strategic treasury operations. As organizations strive to adapt to the post-pandemic world, regulatory shifts aimed at enhancing financial stability, liquidity, and risk management have become central to treasury functions. This review explores how these evolving regulations impact multinational corporations (MNCs) by influencing cash flow management, capital allocation, and compliance requirements. Key regulatory updates include stricter liquidity coverage ratios (LCR), net stable funding ratios (NSFR), and enhanced stress-testing protocols, driven by global regulatory bodies like the Basel Committee and the Financial Stability Board (FSB). Additionally, new taxation policies, changes in cross-border regulations, and intensified scrutiny on digital payments and data privacy have compelled treasuries to reassess their strategies. The adoption of technologies such as AI, blockchain, and RegTech solutions has become critical in helping organizations navigate these changes efficiently, enabling real-time compliance, automated reporting, and enhanced risk management. This highlights the impact of these regulatory shifts on liquidity management, requiring treasurers to optimize cash reserves, streamline cash pooling, and adjust funding strategies. Furthermore, compliance with emerging cybersecurity laws and digital frameworks has become essential to safeguard financial data in an increasingly digitalized environment. Through case studies of leading firms, this review illustrates best practices in adapting treasury operations to the evolving regulatory landscape. Ultimately, the review concludes that a proactive approach to regulatory compliance, combined with the strategic use of technology, is essential for treasurers to optimize financial performance and maintain resilience in a rapidly changing post-COVID-19 world. Organizations that effectively integrate these strategies are better positioned to achieve long-term stability and growth amid ongoing economic uncertainties

Keywords: Strategic Treasury Operations, Post-COVID-19 World, Regulatory Changes, Review.

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Published

21-01-2025

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Articles