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.
- Cash pool
- Concentration account
- Legal implications of cash pooling structures
- Notional pooling