[{"data":1,"prerenderedAt":289},["ShallowReactive",2],{"blog-\u002Fblog\u002Fbank-relationship-management":3,"blog-surround-\u002Fblog\u002Fbank-relationship-management":269,"blog-related-\u002Fblog\u002Fbank-relationship-management":277},{"id":4,"title":5,"audience":6,"body":10,"cluster":233,"date":234,"description":235,"draft":236,"extension":237,"factCheckedAt":238,"faq":239,"featured":236,"language":238,"meta":249,"navigation":250,"order":251,"originalAsset":238,"path":252,"pillar":253,"primaryKeyword":254,"relatedProject":238,"releaseScope":238,"reviewCycle":255,"reviewStatus":256,"reviewedBy":257,"searchIntent":258,"seo":259,"sources":238,"stem":260,"tags":261,"type":267,"updated":234,"__hash__":268},"blog\u002Fblog\u002Fbank-relationship-management.md","Bank Relationship Management",[7,8,9],"treasurer","cfo","treasury-system-lead",{"type":11,"value":12,"toc":222},"minimark",[13,31,36,39,43,49,52,77,85,89,110,114,121,125,138,142,156,160,190,197,200],[14,15,16,20,21,24,25,30],"p",{},[17,18,19],"strong",{},"Bank relationship management is how a company deliberately manages its relationships with its banks — which banks it uses, for what, how much business each one gets, and the value exchanged in both directions."," The core idea most companies underweight: the relationship is ",[17,22,23],{},"two-way",". Banks provide credit, cash management, payments and ",[26,27,29],"a",{"href":28},"\u002Fblog\u002Fbank-guarantees-and-letters-of-credit","services","; the company provides fees, deposits and ancillary business in return. A treasury that treats its banks purely as vendors — taking credit while giving little else — discovers the hard way that credit and good service flow to the companies that give the bank a fair share of business back. Managing that reciprocity deliberately, rather than by accident, is what keeps banking partners reliable and pricing fair.",[32,33,35],"h2",{"id":34},"what-it-is","What it is",[14,37,38],{},"Every company depends on banks for things it can't do without — credit, moving money, holding cash, FX, and more. Bank relationship management is the deliberate stewardship of those dependencies: choosing the right banks, giving each a sensible role, allocating business thoughtfully, and maintaining the relationships over time. Done well it's invisible; done badly it surfaces as a credit line not renewed, or service that quietly deteriorates.",[32,40,42],{"id":41},"the-two-way-value-exchange","The two-way value exchange",[44,45,46],"pull-quote",{},[14,47,48],{},"Banks remember who gave them business when they wanted it. A company that takes a bank's credit but routes its fees and deposits elsewhere is quietly telling the bank where it stands — usually right before it needs the credit renewed.",[14,50,51],{},"The relationship runs both ways:",[53,54,55,62],"ul",{},[56,57,58,61],"li",{},[17,59,60],{},"The bank provides"," — credit (often the anchor, at thin margins), cash management, payments, FX, and other services.",[56,63,64,67,68,72,73,76],{},[17,65,66],{},"The company provides"," — fees, deposits, FX and ",[26,69,71],{"href":70},"\u002Fblog\u002Fsupply-chain-finance-and-dynamic-discounting","other revenue-generating business",": the bank's ",[17,74,75],{},"share of wallet",".",[14,78,79,80,84],{},"Credit is frequently offered ",[81,82,83],"em",{},"in expectation"," of getting the ancillary, profitable business too. A company that takes the credit but gives the profitable business to others is spending relationship capital it will want back later.",[32,86,88],{"id":87},"choosing-the-bank-group","Choosing the bank group",[14,90,91,92,95,96,99,100,104,105,109],{},"How many banks? Enough for ",[17,93,94],{},"diversification, credit capacity and coverage"," — but few enough that each relationship is ",[17,97,98],{},"meaningful and manageable",". Too few concentrates ",[26,101,103],{"href":102},"\u002Fblog\u002Fcounterparty-and-credit-risk-in-treasury","counterparty risk"," and caps capacity; too many fragments the business so thinly that no bank sees enough value to prioritize you, while ",[26,106,108],{"href":107},"\u002Fblog\u002Fbank-account-rationalization","account sprawl"," and administration balloon. The right number is deliberate, not accidental — a managed group sized to the business.",[32,111,113],{"id":112},"allocating-business","Allocating business",[14,115,116,117,120],{},"The heart of relationship management is ",[81,118,119],{},"allocating business to match the relationships",". Banks that provide credit reasonably expect a share of the ancillary business; rewarding your genuine relationship banks with fees and flow keeps them engaged and willing when you need capacity or a favour. Allocating business by inertia — or purely to whoever's cheapest today — erodes the relationships you'll depend on in a crunch.",[32,122,124],{"id":123},"the-tools","The tools",[14,126,127,128,132,133,137],{},"Relationship management is supported by concrete tools: ",[26,129,131],{"href":130},"\u002Fblog\u002Fbank-fee-analysis","bank fee analysis"," (understanding what each bank costs and earns), periodic relationship reviews (is the exchange fair both ways?), ",[26,134,136],{"href":135},"\u002Fblog\u002Felectronic-bank-account-management-ebam","eBAM"," and account governance (keeping the estate clean), and occasional RFPs to test the market. The data these produce is what turns relationship management from impression into evidence.",[32,139,141],{"id":140},"the-tension-with-counterparty-risk","The tension with counterparty risk",[14,143,144,145,148,149,151,152,155],{},"There's a real tension worth naming: relationships pull toward ",[81,146,147],{},"concentrating"," business with a few well-treated banks, while ",[26,150,103],{"href":102}," pulls toward ",[81,153,154],{},"diversifying"," so no single bank's failure is catastrophic. Good relationship management holds both — deep enough relationships to be valued, spread enough that the group survives any one bank. It's a balance, not a contradiction.",[32,157,159],{"id":158},"what-usually-goes-wrong","What usually goes wrong",[53,161,162,168,174,180],{},[56,163,164,167],{},[17,165,166],{},"Too many or too few banks."," Fragmented so thinly that no relationship matters, or concentrated so tightly that risk and capacity are strained.",[56,169,170,173],{},[17,171,172],{},"No reciprocity."," Taking credit while giving business elsewhere — and then being surprised when the credit gets harder to renew.",[56,175,176,179],{},[17,177,178],{},"Reactive, unmanaged relationships."," Never deliberately managing the group, so it drifts and relationships weaken by neglect.",[56,181,182,185,186,189],{},[17,183,184],{},"Ignoring the data."," Not using ",[26,187,188],{"href":130},"fee"," and business-allocation data to understand and steer the relationships.",[14,191,192,193,196],{},"Choose a deliberate bank group, allocate business to match the credit and value each bank provides, use the data to keep the exchange fair, and hold the balance against ",[26,194,195],{"href":102},"counterparty"," concentration — and bank relationships become a reliable asset rather than something that fails you exactly when you need it. Banks are among a company's most important suppliers; managing them deliberately is treasury's job, and a quietly consequential one.",[198,199],"hr",{},[14,201,202],{},[81,203,204,205,209,210,212,213,216,217,221],{},"Part of the ",[26,206,208],{"href":207},"\u002Ftopics\u002Fcash-and-liquidity-management","Cash & Liquidity Management guide",". See also ",[26,211,131],{"href":130}," and ",[26,214,215],{"href":107},"bank account rationalization",". The ",[26,218,220],{"href":219},"\u002Fnewsletter","newsletter"," sends one finance-systems pattern, product decision or build lesson every two weeks.",{"title":223,"searchDepth":224,"depth":224,"links":225},"",2,[226,227,228,229,230,231,232],{"id":34,"depth":224,"text":35},{"id":41,"depth":224,"text":42},{"id":87,"depth":224,"text":88},{"id":112,"depth":224,"text":113},{"id":123,"depth":224,"text":124},{"id":140,"depth":224,"text":141},{"id":158,"depth":224,"text":159},"structures","2026-07-24","How a company deliberately manages which banks it uses, for what, and the value exchanged both ways — because the bank relationship is two-way, not one-sided.",false,"md",null,[240,243,246],{"question":241,"answer":242},"What is bank relationship management?","Bank relationship management is how a company deliberately manages its relationships with its banks — which banks it uses, for which products and regions, how much business each one gets, and the value exchanged in both directions. Banks provide credit, cash management, payments and other services; the company provides fees, deposits and ancillary business. Managing this deliberately rather than by accident ensures the company has reliable banking partners, fair pricing, and access to credit and services when it needs them.",{"question":244,"answer":245},"Why is the bank relationship two-way?","Because banks and companies each provide value to the other, and each expects a return. Banks extend credit (often at thin margins) and provide cash-management and other services; in return they expect a fair share of the company's overall business — fees, deposits, FX, and other revenue-generating activity, often called 'share of wallet.' A company that takes credit from a bank but gives it little other business shouldn't be surprised when that credit becomes harder to renew. Managing the relationship means being deliberate about that reciprocity.",{"question":247,"answer":248},"How many banks should a company have?","Enough to provide diversification, sufficient credit capacity and the geographic and product coverage the business needs — but few enough that each relationship is meaningful and manageable. Too few banks concentrates risk and capacity; too many fragments the business so thinly that no bank sees enough value to prioritize the relationship, and administration and account sprawl balloon. The right number depends on the company's size, geography and needs, but the principle is a deliberate, managed group rather than an accidental collection.",{},true,8.7,"\u002Fblog\u002Fbank-relationship-management","cash-and-liquidity-management","bank relationship management","annual","reviewed","Tan Gravam","informational",{"title":5,"description":235},"blog\u002Fbank-relationship-management",[262,263,264,265,266],"treasury","cash-management","bank-relationships","banks","share-of-wallet","text","RBk3Ue1QJKJjGnarnk87q4z4xFjzT31qfhW71me58JA",[270,273],{"title":271,"path":28,"stem":272,"type":267,"language":238,"draft":236,"children":-1},"Bank Guarantees and Letters of Credit","blog\u002Fbank-guarantees-and-letters-of-credit",{"title":274,"path":275,"stem":276,"type":267,"language":238,"draft":236,"children":-1},"Bank Statement Formats: MT940 vs camt.053 vs BAI2","\u002Fblog\u002Fbank-statement-formats-mt940-camt053-bai2","blog\u002Fbank-statement-formats-mt940-camt053-bai2",[278,282,286],{"path":279,"title":280,"description":281},"\u002Fblog\u002Ftrapped-cash-and-cash-repatriation","Trapped Cash and Cash Repatriation","Trapped cash is money the group owns and can see but can't freely move to where it's needed — here's why it gets stuck and how treasury frees it.",{"path":283,"title":284,"description":285},"\u002Fblog\u002Ftreasury-operating-model-centralized-vs-decentralized","Treasury Operating Model: Centralized vs Decentralized","Centralized, decentralized or hybrid — how treasury is organized across a group, the trade-offs, and why the trend runs toward centralization.",{"path":107,"title":287,"description":288},"Bank Account Rationalization: How to Cut Account Sprawl","Bank account rationalization cuts the number of bank accounts to the minimum a company needs. Why sprawl is expensive, and how to run and govern it.",1785182339101]