Hi,
>> 1. Where to define the Treasury Contracts for this bank?
You should use trans. code BP to create a Business partner - see a detailed description SAP Library.
>> 2. What settings needs to be done for setting up as a Business Partner, for posting the treasury contracts?
In your situation you need to assign at least 2 roles:
- a general role '000000 - Business partner'. Here, you store all general information about the relevant Business partner, like name, address, payment information, etc.;
- a specific role for Treasury 'TR0151 - (Treasury) counterparty'. Here you maintain general and company code relevant data for the specific Business partner.
hope this will help you.
Kind regards,
Renatas