Regional Interest Optimisation

Regional Interest Optimisation

Simplifying cash optimisation across countries and currencies

Regional Interest Optimisation

Simplifying cash optimisation across countries and currencies

At a glance

Companies with operations in multiple markets can enjoy preferential interest rates on cash and borrowings negotiated at the group level. 

This pricing enhancement is dynamically applied daily on the total portfolio value, which is notionally aggregated in a common base currency. 

Benefits
Enjoy higher yield and cost savings

Enjoy higher yield and cost savings

Local entities enjoy higher yield from idle funds and cost savings from lower interest on borrowings.

Easy to implement and administer

Easy to implement and administer

Our solution requires less product documentation compared to other types of liquidity management. 

Benefit from an integrated solution

Benefit from an integrated solution

Our solution can be combined with other liquidity management techniques.

How DBS Regional Interest Optimisation can help you?
  • Preserve full autonomy of the participating accounts without balance sheet implications since funds are not co-mingled.
  • Local entities enjoy higher yield from idle funds and cost savings from lower interest on borrowings as preferential interest rates are dynamically applied on a daily basis based on total portfolio value.
  • Easy to implement and administer as it requires less product documentation compared to other types of liquidity management.
  • Reports can be accessed through IDEAL, our online banking platform, for greater convenience.
What's the difference between Regional Interest Optimisation and Cross-border Cash Concentration?
Criteria Cross-border Cash Concentration Regional Interest Optimisation
Physical transfer of Funds Yes No
Inter-company lending Yes, if cross-entity No
Non-convertible currency No Yes*
Multi-currency inclusion No Yes
Cash Management approach Centralised Decentralised

* Certain currencies are unable to receive interest benefit due to local regulations. Please see the FAQ for more details.

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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Factsheet
For more details, download factsheet
FAQs
Can DBS Regional Interest Optimisation be performed across different currencies?

Yes. Balances will be notionally aggregated in a common base currency.

What currencies does DBS Regional Interest Optimisation support?

Any currency that does not have interest rate restrictions can be included for as long as the account of the currency can be opened in a participating DBS country.

Restrictions currently apply to China, India, and Taiwan, where you will be able to contribute to notional aggregation, but will be unable to receive interest benefits at the local level.

Get in touch
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In Singapore: 1800 222 2200
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