Infrastructure and Interest rate enhancement: Difference between pages

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Infrastructure is the underlying physical and organisational framework which enables other useful activities.
A cash management practice that acts as a substitute for notional pooling in several European countries where tax or regulatory constraints limit the potential for cost-effective notional pooling.


As is the case for notional pooling, interest rate enhancement aims to view the account balances of a company or its subsidiaries as a whole for the purposes of interest calculation.


Physical infrastructure includes railways, roads, buildings, power, sanitation and telecommunications networks.


Financial markets infrastructure includes payment systems, securities settlement systems and central counterparties.
However, unlike notional pooling, there is no formal scheme set up to allow the systematic offsetting of the various participant’s credits and debits.


Treasury operations infrastructure includes treasury's framework of policies, procedures, reporting lines and other relationships.
Also known as Interest rate netting or interest rate optimisation.




==See also==
== See also ==
*[[Belt and Road]]
* [[Cash management]]
*[[CHAPS]]
* [[Notional pooling]]
*[[Corporate]]
 
*[[CREST]]
[[Category:The_business_context]]
*[[EMIR]]
[[Category:Cash_management]]
*[[Financial Market Infrastructure]]
[[Category:Financial_products_and_markets]]
*[[Financial stability]]
[[Category:Liquidity_management]]
*[[I&E]]
*[[Payments and payment systems]]
*[[Payment Systems Regulator]]
*[[Project finance]]
*[[Treasury operations]]
*[[Trumponomics]]

Latest revision as of 23:24, 2 May 2020

A cash management practice that acts as a substitute for notional pooling in several European countries where tax or regulatory constraints limit the potential for cost-effective notional pooling.

As is the case for notional pooling, interest rate enhancement aims to view the account balances of a company or its subsidiaries as a whole for the purposes of interest calculation.


However, unlike notional pooling, there is no formal scheme set up to allow the systematic offsetting of the various participant’s credits and debits.

Also known as Interest rate netting or interest rate optimisation.


See also