Okuzeka
Finance & Banking vocabulary · Accounts & Deposits

Notional pooling

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, notional pooling means: Combining account balances for interest calculation without physically transferring the underlying funds.

In Turkish: fiktif nakit havuzlama

How it is used

Use to distinguish an interest-offset arrangement from pooling that transfers cash.

Example sentences

  1. Notional pooling offset one subsidiary's credit balance against another's debit balance.

    Interest is calculated using combined balances under the arrangement.

  2. The balances remained in separate accounts under the notional pooling agreement.

    The interest calculation does not require an actual cash transfer.

Common collocations

  • notional pooling agreement
  • multicurrency notional pooling
  • treasuryThe department of a bank or company that manages its cash, liquidity, funding, foreign exchange and interest rate risk; also the government ministry in charge of public money.
  • interest rateThe price of borrowing money, shown as a percentage of the amount borrowed or saved for a period, usually one year.

More terms: Accounts & Deposits

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This page explains English vocabulary for learners. It is not financial advice.