Archive for June, 2009
Monday, June 29th, 2009
Netting is a process that allows entities to offset total receivables against total payables. The concept has already been discussed in the context of clearing and settlement systems. Each entity either receives or pays a single net amount to the netting center in its local currency. Exhibit 7.3 illustrates the ...
Posted in General | 2 Comments »
Friday, June 26th, 2009
Cross-border concentration is used when notional pooling is not available or when the cash manager wants to consolidate the surplus positions in currency accounts. Because funds are concentrated into cash pools, there is often a confusion between notional pooling and concentration. Some banks use the terms interchangeably, especially when referring ...
Posted in General | 3 Comments »
Tuesday, June 23rd, 2009
Notional pooling (also known as interest allocation) is a bank service that, on a daily basis, offsets debit and credit balances of a company's separate accounts to calculate a net balance. The bank pays interest on a positive overall position, or charges interest on a negative net balance. The individual ...
Posted in General | 2 Comments »
Saturday, June 20th, 2009
The concept of a lockbox is valid anywhere in the world where payments are still being made by check, across a wide geographical area, and where there is a potential for mail, processing, and availability delays. Although the precise mechanics may not be the same as in the United States, ...
Posted in General | 2 Comments »
Wednesday, June 17th, 2009
There are various options in establishing foreign currency accounts. The two major ones are:
Centralized. One of the simplest ways to manage foreign currency accounts is to maintain subaccounts in the branch of a single bank, often called a multicurrency account. Centralized currency accounts are easy to set up and maintain: ...
Posted in General | 4 Comments »
Sunday, June 14th, 2009
It is important that users' expectations be realistic as to what a global balance report can provide.
In the past, in order to be able to initiate transfers, a company had to subscribe to the proprietary electronic banking platforms of all their banks. These multiple subscriptions were not always convenient and ...
Posted in General | 2 Comments »
Thursday, June 11th, 2009
Although companies have been managing their international cash flows for more than 20 years, it is only relatively recently that off-the-shelf cash management services have become widely available. Initially these products were offered only through the major global banks. However, smaller regional banks and third-party providers are now forming alliances ...
Posted in General | 2 Comments »
Monday, June 8th, 2009
The inevitability of financial change requires treasurers to be cognizant of new products, new regulations, and new opportunities to assist their organizations. Traditional U.S. cash management practice will become more electronic, and Internet-based technologies will drive the integration of accounting, treasury, sales, purchasing, and manufacturing systems. ...
Posted in General | 2 Comments »
Monday, June 8th, 2009
Internet becomes the source of most successful story that you ever hear these days. This is true, because in the internet, you can get everything that you need. For a business, internet has a big part that can decide the successful story of your business. With internet, you can do ...
Posted in General | No Comments »
Saturday, June 6th, 2009
Nowadays almost all companies have run their business online. This is because they realized that internet allows them to get customers from all around the world, even when they are offline. Once we put the advertisements on it, visitors would be able to enter our company’s space and do the ...
Posted in General | 2 Comments »
