GMT and Notional pool: Difference between pages
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'' | ''Cash and liquidity management''. | ||
A notional cash pool is a structure involving several related bank accounts whose balances have been aggregated for the purposes of optimising interest paid or received. | |||
In other words a bank looks only at the total balance of the accounts in the notional pool when calculating interest, but there is no physical movement of funds. | |||
<span style="color:#4B0082">'''''Bank models evolving'''''</span> | |||
:"The world of cash management and payments is evolving in response to changes in bank business models as a result of regulation (ie the move away from notional pools)." | |||
:''Michelle Price, associate policy and technical director, Association of Corporate Treasurers, The Treasurer, August 2018, p24.'' | |||
== See also == | == See also == | ||
* [[ | * [[Aggregation]] | ||
* [[ | * [[Cash pool]] | ||
* [[ | * [[Concentration account]] | ||
* [[ | * [[Consolidation]] | ||
* [[ | * [[Legal implications of cash pooling structures]] | ||
* [[ | * [[Notional pooling]] | ||
* [[ | * [[Regulation]] | ||
===Treasurer articles=== | |||
[http://www.treasurers.org/node/9923 The pros of pooling, ''Sarah Boyce''] | |||
[http://www.treasurers.org/node/8824 Take the plunge, ''Brendan McGraw''] | |||
[[Category: | [[Category:Cash_management]] | ||
Latest revision as of 14:36, 8 August 2018
Cash and liquidity management.
A notional cash pool is a structure involving several related bank accounts whose balances have been aggregated for the purposes of optimising interest paid or received.
In other words a bank looks only at the total balance of the accounts in the notional pool when calculating interest, but there is no physical movement of funds.
Bank models evolving
- "The world of cash management and payments is evolving in response to changes in bank business models as a result of regulation (ie the move away from notional pools)."
- Michelle Price, associate policy and technical director, Association of Corporate Treasurers, The Treasurer, August 2018, p24.
See also
- Aggregation
- Cash pool
- Concentration account
- Consolidation
- Legal implications of cash pooling structures
- Notional pooling
- Regulation
