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Our treasury management functions include but not limited to

  • Liquidity Management
  • Asset and Liability Management
  • Fund Management
  • Market Risk Management


Liquidity and liquidity risk management

Liquidity management is very essential for the survival of every financial institution, and other businesses as well. Managing liquidity risk is a mandatory function of financial institutions and must be performed with the right professionalism, care and experience.

Mismanagement of liquidity risk can lead to a run on the financial institution and jeopardize the survival of the financial institution as a whole. It is essential therefore, that financial institutions find the right balance between assets and liability, the types and their maturities.

Macroeconomic variables and profitability may act as major constraints in the process but, with the right team of professionals, it is possible to weave through and maximize shareholders wealth. This leads to a steady and sustainable growth of the institution’s balance sheet

At Dortis, we employ a robust framework to manage institution-wide liquidity and liquidity risk, setting and managing in-house prudential limits and taking into consideration the balance sheet size and risk appetite of the institution.

We structure the business to be able to absorb both economic and industry shocks which can impact liquidity. We generate a management dashboard, which shows at a glance, the liquidity position of the institution, highlight possible threats to liquidity and make recommendations to management.

We also offer professional advice to management in times of distress and other such circumstances.

Fund Management

Financial institutions are usually faced with questions of how and where to invest to optimize returns on their deposits. They are also concerned with how safe these investments are, so that they are able repay customers upon call.

Fund management activities of financial institutions enhance profitability when carried out prudently. The management of funds is therefore a very vital function which should be undertaken with the required diligence, competence and professionalism. The decision to create assets or hold cash, invest in long or short term assets, and whether to invest in government instruments, corporate bonds, loans etc. are those which must be made in order to optimize profit while maintaining optimum level of liquidity.

Dortis with its expertise, can advice management through regular reports and meetings as to which level of investment and liquidity is appropriate for the institution. We employ robust tools and macro-economic analysis in doing this. Dortis researches and analyzes the various investment opportunities available to the financial institution and recommends which ones are safe and profitable, and how to structure the investment in order to mitigate risk.

Assets and Liability Management (ALM)

The intermediation role of financial institutions involves taking deposits and creating assets such as loans to other customers. There is a cost associated with taking deposit and likewise a return associated with lending or any form of earning assets, referred to as cost of funds and yield on assets respectively. This difference, usually referred to as a ‘margin’ or ‘spread’, becomes the underlying determinant of the net interest income of the institution. For this reason the institution must attach a high degree of importance to the pricing of assets and liabilities.

Dortis performs the ALM function of a financial institution by monitoring and managing on an on-going basis the cost of funds and yield on assets, which are essentially profitability indicators of the institution. Dortis will hold periodic meetings with the management of the financial institution to deliberate on the various determinants of the margin and set new prices where appropriate. At such meetings Dortis will present industry patterns so managers can know where they stand in the industry and strategize on how they can remain competitive.

Other services by Dortis

  • Risk management
  • Sell-side & Buy-side research
  • Business Process Improvements
  • Training and Development