When is the right time for your company to set up an in-house bank?

Setting up an in-house bank offers significant benefits for multinational companies, but is often perceived as complex and expensive to set up. Asking the right questions is a great start, says Nikolai Diekert

​As companies grow, whether organically or by acquisition, the need to make the best possible use of corporate cash grows with them. Having one subsidiary overdrawn and paying interest while another is sitting on a cash surplus makes little sense.
​
To tackle this problem, many companies look at ways of optimising their cash management. A first step is often to set up an intercompany funding structure, allowing one subsidiary to lend to another. Intercompany accounts are maintained to track that debt, and interest is applied to them.

Apply for your place at our Treasury Dragons Virtual Round Table on in-house banking

REGISTER YOUR INTEREST

Read More