Collecting bank and Notional pooling: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
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''International trade''.   
''Banking''.   


In a transaction involving a documentary collection, a collecting bank is the remitting bank’s correspondent, which is responsible for contacting the buyer (importer), collecting the amount due, and releasing documents as instructed.
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.
 
Notional pooling is also referred to as interest offset pooling.




== See also ==
== See also ==
* [[Documentary collection]]
* [[Cash pool]]
* [[CertICM]]
* [[Cross-guarantees]]
* [[Interest rate enhancement]]


[[Category:Manage_risks]]
[[Category:Long_term_funding]]
[[Category:Risk_frameworks]]
[[Category:Cash_management]]
[[Category:Trade_finance]]

Revision as of 08:14, 29 November 2014

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.

Notional pooling is also referred to as interest offset pooling.


See also