Fallback language and Notional pooling: Difference between pages

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1. ''Interest rates - reference rates''.
''Banking''.


Fallback language is contractual wording specifying a 'fallback' interest rate, and when it will be invoked.
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.


2.
Notional pooling is also referred to as interest offset pooling.
 
Similar contractual wording in other contexts.




== See also ==
== See also ==
* [[Alternate Base Rate]]
* [[Cash pool]]
* [[Fallback]]
* [[CertICM]]
* [[Reference rate]]
* [[Cross-guarantees]]
* [[Interest rate enhancement]]
* [[Legal implications of cash pooling structures]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Long_term_funding]]
[[Category:Cash_management]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]

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.


See also