IBOS Introduces New Approach to Euro Concentration

IBOS has concluded an agreement between members that allows the movement of funds between banks on a true end of day, value-dated basis. Surplus balances are swept and deficit positions are funded automatically between the foreign operating companies of a group and the Treasury Centre. These transfers are debited and credited on a same-day value basis. No value is lost and there is no explicit charge for the transfers. Using this product, a Treasurer can concentrate his cash position in any one of several European locations, leaving his various subsidiaries in a zero cash position. This enables him to have larger sums to invest, or to reduce funding requirements centrally. Often this will also facilitate the removal of liquid working capital from the group. Currently, this product operates in France, Belgium, Holland, Germany, Italy, Spain and the UK (at Bank One) with further countries to be introduced shortly. In the near future, a series of extensions to the functionality of this product is planned. Notably, these will include the setting of target balances and the ability to have the product operate at certain intervals: for example, every week, every month and so on.


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