Notional Pooling Account, Corporate Cash Account |Liquidity Management| DBS Corporate Banking

Notional Pooling

Optimise your group cash balance and reduce loan costs

Notional Pooling

Optimise your group cash balance and reduce loan costs

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.

Benefits

Optimise self-funding and reduce internal interest expense

Balances of participating accounts are notionally aggregated into a single cash position and offset automatically to derive net balance for interest computation.

Preserve autonomy of multiple accounts

Enjoy notional aggregation of balances into a single cash position without any physical funds transfer.

Control excess liquidity and funding of shortages easily

Manage your group easily via a pool master or designated account with the option to redistribute the notional pooling benefit to participating accounts.

DBS Treasury Prism

DBS Treasury Prism is world's first online treasury and cash management simulation platform. Simulate cash management structures and identify the optimal solution for your business with a single click.

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Factsheets

For more details, download factsheets

Domestic Single - Currency Notional Pooling

(287.6KB)

Domestic Multi - Currency Notional Pooling

(293.3KB)

FAQs

	Can DBS support Notional Pooling structures in different currencies?
	Yes, we can support structures in different currencies. However, each structure can only consist of accounts of the same currency.

	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.

	What’s the difference between Notional Pooling and Cash Concentration?
	Cash Concentration involves the physical movement of funds into a concentration account. There is no physical movement of funds for Notional Pooling, because account balances are notionally set-off. However, Cash Concentration creates inter-company loans, because there's physical movement of funds between accounts belonging to different companies.

	Can I do this on a regional basis?
	Yes, we have regional liquidity management capabilities such as cross-border sweep and interest optimisation. However, the availability of liquidity management capabilities is subject to regulations in each country.