Notional Pooling is a mechanism of netting off the balance, by currency, of multiple accounts of participating companies (or branches of a company), so that the Bank will have a consolidated position of the company or Holding/Group, for the purpose of calculating interest based on the net balance. It will also facilitate inter-company borrowing without physical movement of funds. In order to enable the Bank to settle the balance, it may require an agreement to be signed by participating companies (stipulating a crossed guarantee between participants).

Benefits

• Technically simple to implement
• Each participating company retains autonomy over its bank accounts
• No inter-company loans appear in the accounts
• Facilitate inter-company borrowing
• Interest revenue calculation based on consolidated balance
• Ensuring availability of fund for operational process

Features

• Real-time consolidated balance
• Overdraft limit possible
• Same currency only
• Redistribution of interest / charges set by Holding/Group