Non-physical pooling does not involve any physical transfers. Credit and debit balances on the account concerned are notionally combined and offset to establish a net position for the calculation of interest.
All (credit and debit) balances on the account involved in a notional pool are notionally combined. Interest calculation takes place only on this fictitious balance. Interest is subsequently computed via the master account.
No interest is credited or charged to the various subsidiary accounts involved in the offsetting.
Please note that notional pooling is only offered in environments where the legislation imposes no fiscal or legal constraints.
Mr. Markus Straussfeld
Head of Cash Management International Sales