Design a physical zero-balancing and notional pooling structure suited to a group's entity and currency footprint.
Finance & Banking
Cash Pooling and In-House Bank Structures for Multinational Groups
Learn to design physical and notional cash pooling structures, build an in-house bank, and manage intercompany funding, FX netting and tax exposure across a multinational group.
🗓️Duration5 training days
📚Content4 modules · 8 sessions
🎓On completionAccredited attendance certificate
About the programme
Course Overview
Multinational groups routinely hold idle cash in dozens of local entities while sister companies borrow at commercial rates, and every intercompany transfer that crosses a currency border adds bank fees, FX spread and tax friction. This course tackles that structural inefficiency directly: participants build physical zero-balancing sweeps and notional pooling arrangements, then design an in-house bank that centralises intercompany lending, multilateral netting and FX exposure management. Teaching combines structuring workshops on pooling agreements, transfer pricing analysis under the OECD arm's length principle, and a simulated netting cycle run through spreadsheet and treasury system mock-ups. Sessions cover header and sub-account architecture, cross-guarantee documentation, withholding tax and thin capitalisation exposure, and the KPIs treasury committees use to track idle cash and funding cost. Participants leave able to map a group's account structure, draft the commercial terms of an intercompany loan, and present a pooling and in-house bank proposal that a group treasurer can approve and implement.
Expected Learning Outcomes
Build an in-house bank function that centralises intercompany lending, netting and FX exposure management.
Draft intercompany loan and cash pooling agreements with arm's length interest terms defensible under transfer pricing rules.
Assess withholding tax, thin capitalisation and cross-guarantee risks arising from pooling and in-house bank structures.
Run a multilateral netting cycle that reduces the number and cost of cross-border intercompany settlements.
Select treasury management system connectivity for automated sweeping and bank statement reconciliation.
Present a liquidity structure business case with KPIs that quantify idle cash reduction and funding cost savings.
Who Should Attend
Group treasurers and treasury managers responsible for liquidity structure design.
Corporate finance managers coordinating intercompany funding across subsidiaries.
Tax and transfer pricing specialists reviewing intercompany interest arrangements.
Financial controllers overseeing multi-entity cash and bank account reconciliation.
Treasury systems analysts implementing or upgrading a treasury management platform.
Regional finance directors managing subsidiary cash positions across currencies.
Course Modules
Select any module to see its sessions and points.
01Foundations of Group Liquidity Structures
2 sessions · 8 points
Session 1Physical vs Notional Pooling Mechanics
- Compare zero-balancing, target-balancing and notional pooling mechanics and the entities each suits best.
- Map a multinational group's legal entities, currencies and bank relationships onto a candidate pooling structure.
- Calculate interest and fee allocation under a pooling arrangement using a sample group balance sheet.
- Identify jurisdictions where notional pooling is restricted and physical sweeping is the only viable option.
Session 2Designing the In-House Bank Function
- Define the mandate, governance and staffing of an in-house bank against a shared service centre model.
- Design header account and sub-ledger architecture giving each entity a virtual account within the group.
- Set intercompany current account terms, including interest rate methodology and settlement frequency.
- Build a business case comparing in-house bank set-up costs against projected external funding savings.
02Legal, Tax and Regulatory Architecture
2 sessions · 8 points
Session 1Intercompany Loan Agreements and Transfer Pricing
- Draft intercompany loan agreements specifying tenor, interest basis and repayment terms consistent with group policy.
- Apply the OECD arm's length principle to benchmark intercompany interest rates against comparable market loans.
- Prepare transfer pricing documentation supporting the commercial rationale of pooling and netting arrangements.
- Evaluate credit rating and guarantee support needed to justify the pricing of intercompany borrowing.
Session 2Withholding Tax, Thin Capitalisation and Guarantees
- Assess withholding tax exposure on cross-border interest payments generated by pooling structures.
- Test entity-level debt-to-equity ratios against local thin capitalisation rules before adding intercompany debt.
- Structure cross-guarantees and letters of comfort that support pooling without breaching corporate benefit rules.
- Review double tax treaty relief available to reduce withholding tax leakage on intercompany interest flows.
03Multilateral Netting and FX Risk Management
2 sessions · 8 points
Session 1Netting Centre Design and Settlement Cycles
- Design a netting centre workflow that consolidates intercompany invoices into a single settlement per entity.
- Set a netting calendar and cut-off schedule aligned with subsidiaries' month-end reporting timetables.
- Calculate the reduction in cross-border payment volume and FX conversion cost delivered by multilateral netting.
- Draft netting agreement terms covering dispute resolution and treatment of rejected or late invoices.
Session 2Centralising FX Exposure Management
- Consolidate subsidiary FX exposures into a single group position managed from the in-house bank.
- Structure internal forward contracts that transfer commercial FX risk from operating entities to treasury.
- Set hedging policy limits and delegated authority for the in-house bank's external FX hedging activity.
- Reconcile internal FX deal rates against external market hedges to prevent basis risk building up centrally.
04Technology, Governance and Performance Measurement
2 sessions · 8 points
Session 1Treasury Management Systems and Bank Connectivity
- Compare treasury management system options for automated sweeping, netting and intercompany accounting.
- Configure SWIFT and ISO 20022 connectivity linking subsidiary bank accounts to the in-house bank ledger.
- Automate daily cash position reporting that consolidates balances across pooling header and sub-accounts.
- Test end-to-end straight-through processing from subsidiary payment instruction to netting settlement.
Session 2Governance, KPIs and Continuous Improvement
- Define governance roles separating treasury execution, tax review and internal audit oversight of pooling.
- Track idle cash, funding cost and days payable outstanding as KPIs for in-house bank performance.
- Build an escalation process for exceptions such as breached limits or rejected intercompany settlements.
- Plan a phased rollout extending pooling and netting to newly acquired or divested group entities.
What the participant receives
4 course modules
A structured syllabus
8 training sessions
across 5 days
32 detailed points
Applied, detailed content
Accredited attendance certificate
On completing the programme
Complete your registration
We will contact you within one business day to confirm.
Ready to start?
Reserve your seat and start building the skill.