Danske Bank's cash pool programmes are a key component of our group account and liquidity management services. They are based on real-time zero balancing and always show the net balance on your accounts.
Real-time overview
With Business Online, your accounting staff always have real-time information about the group's net liquidity and can make real-time transactions.
You obtain the same interest rate on deposits and loans as the positions on various accounts are offset to determine the net position.
Internal group interest rates
Your group designates the interest rate for outstanding debts between the parent company and subsidiaries. The group can choose to use the external interest rate, agreed upon with Danske Bank, or an internal group interest rate. You can use different rates for different subsidiaries.
The calculation and addition of interest on internal group accounts takes place automatically in the Group Cash Pool programme.
Internal group credit limits
Your group also designates the internal credit limits on subsidiaries' accounts. The total of these credit limits may be either greater or less than the external credit limit agreed upon with the Bank.
You can choose to use an automatic sufficient-funds check to ensure that subsidiaries do not exceed their internal credit limits.
Cross-Border Cash Pool
With a Cross-Border Cash Pool, your group can manage all of its accounts in the same currency, for example in euros.
A Cross-Border Cash Pool programme must comply with local laws, tax regulations and central bank reporting requirements. Danske Bank has extensive experience in designing individual cash management solutions for international groups. For further information, please contact us.