Notional Pooling - Cash Management | DBS HK Corporate Banking

Notional Pooling

Optimise group cash balances without moving funds

Notional Pooling

Optimise group cash balances without moving funds

At a glance

DBS’ Notional Pooling solution allows you to optimise your group cash balance and reduce the need to borrow. Cash balances in different accounts are notionally offset to derive the net balance, which is then used to calculate interest. In this way, you earn higher interest and incur lower borrowing costs.

How it works

Benefits

Optimise self-funding and reduce internal interest expense 

Credit and debit balances across a group of accounts in the same location are notionally aggregated to derive a pool net balance used as the basis for net interest computation

Optimise balances

Reduce borrowing costs and earn higher interest on pooled balances

Operational benefits

Benefit derived from pooling can be apportioned systematically across the participants in the pool as per pre-agreed criteria

How to Apply

Simply call our DBS Business Care at 2290 8068 to fix an appointment or email [email protected]. Our Relationship Manager will be glad to assist you.

FAQs

	Can DBS Notional Pooling support structures in different currencies?
	Yes.

	Can notional pooling be performed among accounts of subsidiary companies?
	Yes.

	Where will the notional pool interest benefit be allocated?
	DBS provides flexibility of interest allocation. Interest derived from pooling can be apportioned to the pool master account or the sub accounts depending on the interest allocation method selected by client.

	What’s the difference between Notional Pooling and Cash Concentration?
	Cash Concentration involves physical movement of funds into a concentration account, thus, it creates inter-company loans, as money belongs to a different entity. There is no physical movement of funds for Notional Pooling, because account balances are notionally set-off.

	Can I do this on a regional basis?
	Notional Pooling only works across accounts in the same location. In addition, we provide interoperability with other liquidity techniques such as Cross-Border Sweep and Interest Optimisation to consolidate funds from multiple countries and regions. However, they are subject to the regulations of each country/region.