OREANDA-NEWS. October 03, 2014. Sviaz-Bank has developed new liquidity management products – Virtual Cash-Pooling and Corporate Balance – geared to big enterprises among its corporate customers having large networks of branches and to groups of companies that have to manage heavy financial flows.

“We are developing remote banking for our corporate customers and introducing the best financial practices. The system we have developed to manage several bank accounts of a group of companies allows their head organization to promptly manage funds in the accounts of the group’s member companies, optimize interest rates payable on deposits and overdrafts, improve the quality of liquidity management, and minimize financial costs,” says Sergey Volokhov, Vice Chairman of Sviaz-Bank’s Management Board.

Virtual cash-pooling helps the Bank to optimize interest it receives from members of the group of companies for the use of credit in overdraft form, increase significantly the returns of funds it accepts on deposit temporarily because the Bank considers the balances in these companies’ settlement and loan accounts together. The total cost of funds borrowed by the group companies in situations where some companies of the group take out a loan from the Bank, and the remaining companies have the requisite funds deposited in their settlement accounts with the Bank. No funds move physically between the accounts of the group’s member companies.

As a convenient instrument to manage uncommitted funds held in the settlement accounts of a group of companies, corporate balance allows all settlement accounts of the group’s member companies to be combined in a virtual pool for a common liquid position to be calculated. Interest is added and paid every month into each settlement account with consideration for the aggregate balance in all accounts, helping in this way to push up the yield of the funds placed with the Bank. The basis interest rate may be either fixed or floating, for example, linked to the MosPrime Rate market indicator.