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Asian treasurers ‘focusing on diversifying counterparty risk’

Half of Asian treasurers have reported taking actions to increase the number of banking relationships they hold, new research has suggested.

Half of Asian treasurers have reported taking actions to increase the number of banking relationships they hold, new research has suggested.

A study by JP Morgan Asset Management claimed that this could signal interest in diversified counterparty risk.

It also claimed that many treasurers are relying on a larger number of providers in order to receive each of the services they require.

The number of Asian treasurers allowed to invest in pooled funds has also fallen, with demand for triple-A rating at a very high level.

Kathleen Hughes, head of global liquidity for the Europe, Middle East and Asia region, said that risk aversion is a continued presence in the financial markets.

She said: “Counterparty risk is being reduced, wherever possible, and treasurers are maintaining higher levels of liquidity with a bias towards quality in the pooled funds space.”

Monetary Poliy Committee member and deputy governor for financial stability Paul Tucker recently claimed that regulations must ensure that the core banking system remains safe.

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