Off balance sheet risk and Single legal account pooling: Difference between pages

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imported>Doug Williamson
(updated link)
 
imported>Doug Williamson
(Linked to The Treasurers Handbook - Legal implications of cash pooling structures)
 
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1. ''Liquidity and funding risk in banks.''
A cash management technique based around a single legal master account structure in the name of the parent or group financing company where the other participant accounts act as memo accounts of that legal account.


Off balance sheet sources of liquidity risks for banks include items which might cause demands for additional funding in the future. These include:
This cash management technique is widely used in Northern Europe (Nordic and Baltic countries).
*Contingent liabilities such as guarantees.
*Undrawn lending facilities.
*Derivative instruments.
*Securitisation special purpose vehicles.


 
Also known as Balance netting.
2.
 
Any risks to an organisation arising from events, contingencies or relationships not recorded in the organisation's balance sheet.




== See also ==
== See also ==
* [[Balance sheet]]
* [[Cash management]]
* [[Contingent liabilities]]
* [[CertICM]]
* [[Derivative instrument]]
* [[Pooling]]
* [[Entity]]
* [[Legal implications of cash pooling structures]]
* [[FRS  102]]
* [[IFRS 16]]
* [[Liquidity risk]]
* [[Off balance sheet]]
* [[Off balance sheet finance]]
* [[Required Stable Funding]]
* [[Securitisation special purpose vehicle]]

Revision as of 11:11, 1 December 2014

A cash management technique based around a single legal master account structure in the name of the parent or group financing company where the other participant accounts act as memo accounts of that legal account.

This cash management technique is widely used in Northern Europe (Nordic and Baltic countries).

Also known as Balance netting.


See also

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