Managing bulk global interbank negotiations
Using process, technology and layered resourcing to support the rapid renegotiation of 200+ interbank agreements.
The challenge
Our client required renegotiation and formalising of the terms under which it held money with other banks, in response to a regulator imposed requirement, against a tight deadline. The process was made especially challenging by the client requirement that the renegotiation be fronted in each case by the relationship contact for each counterparty, based outside the legal team. It was also necessary to adopt consistent commercial positions and remain compliant with the internal and regulator set requirements.
The solution
We worked with legal specialists in our London and Paris offices to design a process, which would be staffed at three levels: administrative and “by playbook” negotiation in our Newcastle Hub; legal negotiation within non-exceptional parameters in our Warsaw office; and exceptional escalations in our Paris and London offices.
Designing the playbook and process involved reducing complex agreements to simple constituent parts for negotiation, with clear and pragmatic fall backs. This enabled quick negotiation with sophisticated counterparties. We also designed it to evolve throughout the negotiations, so that all escalated positions would be incorporated into the ongoing client positions.
The playbook and process were run through a bespoke system which was accessible to all parties, including client relationship managers and senior stakeholders within the client’s organisation, for live and detailed reporting on status and positions.
The definition of the process was sufficiently clear to agree output based on “by negotiation” pricing with the client, which was maintained across the portfolio during the project.
Results and benefits
- Project completed to deadline and budget, and in satisfaction of all regulatory requirements.
- Clear reporting throughout, enabling better internal project management for the client and accountability to senior stakeholders.
- Close liaison with client relationship managers, ensuring careful management of the client’s customer relationships whilst maintaining commercial consistency and compliance.
