In every region and country around the world, our corporate and FI customers face the same challenges: they need to maximise returns and to minimise costs. Within the last few years, managing liquidity on a global basis has changed as a result of technological advances that now make it possible for new structured solutions, as well as the evolution of the treasury function in corporations.
Corporations have expanded their footprint to more countries, translating into more currencies to manage. Customers are increasingly re-engineering and centralising their treasury operations and looking for regional and global liquidity management tools.

Global Liquidity and Investment Management offers innovative, fully automated end-to-end solutions that meet these challenges and aid our customers in moving, managing and investing their balances.

Target Balancing

Target balancing, also known as cash concentration is a fully automated process that physically concentrates value-dated/ available end-of-day closing balances in a single currency from source accounts into a concentration account.
The customer specifies the level of the funds to be left in each source account i.e. the Target Balance. The Target Balance may be zero or any sum deemed to be the minimum credit balance. The customer also determines the frequency of sweeps - or the specific working days on which the sweeps are to be effected. If the source account has excess funds, funds are moved to the concentration account. If the source account is short of funds, funds are moved from the concentration account to the source account to clear the short position. Operating accounts no longer need to hold idle balances after payments are processed and will show the target balance at the end of the day.

Notional Pooling

Notional Pooling is a process whereby value-dated/ available end-of-day closing balances in a single currency from a pool of accounts is notionally combined (funds are not physically moved) for interest purposes.
Interest is paid/charged on the net balance of the pool, resulting in higher interest earned or reduced overdraft interest overall. Interest paid/charged is posted to the Header account monthly, and may be reallocated to the source accounts if required. Notional Pooling is often used by subsidiary accounts that need to be kept autonomous, as there is no co mingling or transfer of funds.

Interest Reallocation

Interest Reallocation is the process of reallocating interest earned on the liquidity structure from the header to each of the participating accounts. Currently, Interest Reallocation is only offered when London is the concentration center.
The customer can reallocate interest to all accounts participating in the structure by using the same interest conditions as applicable to the ultimate header account, or they can apply spreads. Although the customer can select spreads, they have to use the same interest benchmark as the ultimate header account.