The European liquidity management landscape is undergoing a fundamental transformation. Once anchored in predictable conventions and stable relationships, the ecosystem now faces a convergence of macroeconomic volatility, sweeping regulatory reform and rapid technological innovation. This paper provides a detailed analytical examination of these shifts, exploring the evolving interdependencies between banks, corporates and payment service providers (PSPs). Key themes include the impact of persistent inflation, fluctuating interest rates and geopolitical uncertainty; the far-reaching effects of regulatory reforms such as the third Capital Requirements Regulation, the Instant Payments Regulation, and the proposed third Payment Services Directive and Payment Services Regulation; and the accelerating adoption of real-time payments, data automation and digital treasury solutions. Through practical examples, operational analysis and actionable recommendations, this paper equips finance professionals, treasurers, bankers and PSPs to navigate the evolving European liquidity management environment and prepare for the challenges and opportunities ahead. This article is also included in the Business & Management Collection which can be accessed at http://hstalks/business.
Joost Bergen (Sun,) studied this question.