Notional pooling: Difference between revisions
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imported>Doug Williamson (Linked to The Treasurers Handbook - Legal implications of cash pooling structures) |
imported>Doug Williamson (Link with Virtual pooling page.) |
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''Banking'' | ''Banking'' | ||
The technique used by banks for calculating interest on balances in a notional cash pool. | The technique used by banks for calculating interest on balances in a notional cash pool. | ||
Excess funds in the accounts of a company or its subsidiaries are used to offset deficits in other company accounts for the purpose of determining interest earned or owed. | Excess funds in the accounts of a company or its subsidiaries are used to offset deficits in other company accounts for the purpose of determining interest earned or owed. Funds are not physically moved. | ||
Notional pooling is also referred to as interest offset pooling. | Notional pooling is also referred to as interest offset pooling. | ||
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== See also == | == See also == | ||
* [[Cash concentration]] | |||
* [[Cash pool]] | * [[Cash pool]] | ||
* [[CertICM]] | * [[CertICM]] | ||
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* [[Interest rate enhancement]] | * [[Interest rate enhancement]] | ||
* [[Legal implications of cash pooling structures]] | * [[Legal implications of cash pooling structures]] | ||
* [[The future of pooling]] | |||
* [[Virtual pooling]] | |||
[[Category:Long_term_funding]] | [[Category:Long_term_funding]] | ||
[[Category:Cash_management]] | [[Category:Cash_management]] | ||
Latest revision as of 16:25, 11 November 2017
Banking
The technique used by banks for calculating interest on balances in a notional cash pool.
Excess funds in the accounts of a company or its subsidiaries are used to offset deficits in other company accounts for the purpose of determining interest earned or owed. Funds are not physically moved.
Notional pooling is also referred to as interest offset pooling.
