Loan Market Association and Notional pooling: Difference between pages

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(LMA).
''Banking''.


The Loan Market Association is a trade body for the Europe, Middle East and Africa (EMEA) [[syndicated loan]] market, founded in 1996 by banks operating in that market.
The technique used by banks for calculating interest on balances in a notional cash pool.  


Promoting loan markets in various ways, the LMA publishes model documentation and "market guidelines" for use in both primary and secondary markets with a view to achieving more standardisation of widely accepted market practice.
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.


The [[Association of Corporate Treasurers]] (ACT) has supported the LMA's primary documentation initiative since its inception.


The LMA discusses its primary investment grade borrower documentation with the ACT prior to publication.
== See also ==
 
* [[Cash pool]]
With [http://www.slaughterandmay.com/ Slaughter and May], ACT publishes [http://www.treasurers.org/loandocumentation commentaries] on the LMA primary documents.
* [[CertICM]]
 
* [[Cross-guarantees]]
 
* [[Interest rate enhancement]]
The LMA published its Green Loan Principles in 2018.
 
 
==See also==
* [[An introduction to loan finance]]
* [[Documentation]]
* [[Documentation risk]]
* [[Green Loan Principles]]
* [[IGA]]
* [[Sustainability Linked Loan Principles]]
 
 
 
===Other links===
* [http://www.lma.eu.com/default.aspx The Loan Market Association website]


[[Category:Long_term_funding]]
[[Category:Long_term_funding]]
[[Category:Cash_management]]

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