Cash pool: Difference between revisions

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''Cash and liquidity management''
''Cash and liquidity management''.


A cash pool is a structure involving several related bank accounts whose balances have been aggregated for the purposes of optimising interest paid or received and improving liquidity management.  
A cash pool is a structure involving several related bank accounts whose balances have been aggregated for the purposes of optimising interest paid or received and improving liquidity management.  
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== See also ==
== See also ==
* [[Aggregation]]
* [[Aggregation]]
* [[CertICM]]
* [[Cash pooling]]
* [[Concentration account]]
* [[Concentration account]]
* [[Consolidation]]
* [[Consolidation]]
* [[Legal implications of cash pooling structures]]
* [[Liquidity]]
* [[Liquidity]]
* [[Master account]]
* [[Master account]]
* [[Notional pooling]]
* [[Notional pooling]]
* [[Legal implications of cash pooling structures]]




===Treasurer articles===
==Treasurer articles==
[http://www.treasurers.org/node/9923 The pros of pooling, ''Sarah Boyce'']
[http://www.treasurers.org/node/9923 The pros of pooling, ''Sarah Boyce'']



Latest revision as of 09:08, 16 February 2022

Cash and liquidity management.

A cash pool is a structure involving several related bank accounts whose balances have been aggregated for the purposes of optimising interest paid or received and improving liquidity management.

A cash pool can be physical or notional.


A physical cash pool is a concentration account used for the purposes of managing liquidity. Surplus funds are physically concentrated into the account in order to maximise interest. Deficit accounts are covered by transfers from the cash pool in order to minimise overdraft interest.


A notional cash pool is a structure involving several related 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.


See also


Treasurer articles

The pros of pooling, Sarah Boyce

Take the plunge, Brendan McGraw