Cash Management | OTP banka

We provide you with all the information on transactions and the balance of cash on accounts of connected companies in Slovenia and other countries.

The parent company of the group can create an individual or mass payment request or request a debit against an account of a connected company and thereby ensure central management of accounts of connected companies.

Efficient liquidity management and therewith associated pooling services are becoming an increasingly important part of the Cash Management product range.

What is CASH POOLING?

Pooling of cash and compensation of cash overages and shortages on the s. c. Master Account.

Cash Pooling – Zero Balancing

With Zero Balancing, the total available balance from various accounts is automatically transferred to the Master Account on a daily basis.

On the other hand, all negative balances on respective Pooling Accounts are compensated for daily from the Master Account. The final goal of pooling is for all accounts to have an identical end-of-day balance of 0 and be compensated on the Master Account.

Cash Pooling – Target Balancing

With target balancing, cash is transferred at a certain time of the day based on:

• A midday statement created by the bank that maintains the pooling account and based on a request for payment (MT103), or
• A request for transfer (MT101) created by the primary bank that maintains the Master Account.

The pre-condition for operational and automatic execution of pooling are messages MT 942 and MT 101.