Notional pooling: Difference between revisions
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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]] | |||
[[Category:Long_term_funding]] | [[Category:Long_term_funding]] | ||
[[Category:Cash_management]] | [[Category:Cash_management]] | ||
Revision as of 14:53, 12 November 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.
