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 (Align with qualifications material.) |
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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. | ||
Revision as of 08:31, 19 April 2015
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.
