Cash pool: Difference between revisions

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imported>Doug Williamson
(Update labelling.)
imported>Doug Williamson
(Deleted historic dates and added authors to Treasurer articles.)
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===Treasurer articles===
===Treasurer articles===
[http://www.treasurers.org/node/9923 The pros of pooling, Sarah Boyce, March 2014]
[http://www.treasurers.org/node/9923 The pros of pooling, ''Sarah Boyce'']


[http://www.treasurers.org/node/8824 Take the plunge, March 2013]
[http://www.treasurers.org/node/8824 Take the plunge, ''Brendan McGraw'']


[[Category:Cash_management]]
[[Category:Cash_management]]

Revision as of 15:04, 11 April 2018

Cash and liquidity management

A cash pool is a structure involving several related bank accounts whose balances have been aggregated for the purposes of optimising interest paid or received and improving liquidity management.

A cash pool can be physical or notional.


A physical cash pool is a concentration account used for the purposes of managing liquidity. Surplus funds are physically concentrated into the account in order to maximise interest. Deficit accounts are covered by transfers from the cash pool in order to minimise overdraft interest.


A notional cash pool is a structure involving several related accounts whose balances have been aggregated for the purposes of optimising interest paid or received. In other words a bank looks only at the total balance of the accounts in the notional pool when calculating interest, but there is no physical movement of funds.


See also


Treasurer articles

The pros of pooling, Sarah Boyce

Take the plunge, Brendan McGraw