Corporates look to cash pooling as rates rise

As interest rates rise, so do the negative impacts of inefficient bank account and liquidity structures. Cash pooling automatically consolidates cash, decreasing the credit-debit spread that would otherwise be paid on individual accounts. This is driving demand for physical pooling solutions.

We have observed increased demand for notional pooling structures in an increased number of locations

Mariya Tretyak, BNP Paribas

Notional pooling (especially multi-currency) enables corporates to manage currency mismatches while minimizing borrowing costs. However, it is subject to various regulatory and legal conditions and not available in every market.