Manage Liquidity

Notional Pooling

Optimise your group cash balance without the physical movement of funds

Optimise your group cash balance with DBS Notional Pooling. Cash balances in different accounts are notionally offset to derive the net balance, which is then used to calculate interest. In this way, you can earn higher interest and incur lower borrowing costs. There’s no physical movement of funds between participating entities, which means there is no inter-company borrowing.





Why choose DBS Notional Pooling?
  • Preserve the autonomy of sub-accounts with minimal administration
  • Optimise your group cash balance through reduced borrowing costs, higher interest and centralised funding
  • Eliminate the hassle of having to manually report, track and reconcile your various accounts
  • Reports can be accessed through IDEAL™, our online banking platform, for greater convenience

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 to?

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.

 

How do I apply?

Please speak with your relationship manager.