Outsourcing Financial Services Activities: Industry Practices to Mitigate Risks
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One of the unique f iscal agency functions that the Reserve Banks provide to the Treasury is a program through which the Reserve Banks invest Treasury monies until needed to fund the government’s operations. The Treasury receives funds from two principal sources: tax receipts and bor- rowings. The funds that f low into and out of the government’s account vary in amount throughout the year; for example, the account balance tends to be relatively high during the April tax season. The Treasury directs the Reserve Banks to invest funds in excess of a previously agreed- upon minimum amount in...
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