Answer to Question #258251 in Finance for Vibha

Question

The organization structure of a Bank’s Treasury unit involves designing of its operations across Front office, Mid-office, and Back office. Describe each of these three operating arms in terms of its nature, purpose / objectives, and the skills / qualifications of the people employed in these 3 operating arms

Answer 1

1. Front office

Responsible for carrying out day-to-day analysis and transactions relating to the management of funding, risk, cash and liquidity.

2. Mid-office

Responsible for reporting and analysis but it varies enormously by organisation.

3. Back office

Administers and supports the front office and its main functions are to validate, settle, and account for deals.