Notional pooling

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Revision as of 17:30, 10 February 2017 by imported>Doug Williamson (Standardise page layout.)
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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