PhD, Associate Professor, Corvinus University of Budapest, Department of Finance
Economist, Head of Department, Commerzbank Private Limited Company, Budapest, Cash Management and International Business
Published in: Public Finance Quarterly 2015/3 (p. 312-325.)
SUMMARY: Corporate cash management is a significant area of classic corporate finance theory and practice. Within a corporate group it is almost impossible to implement centralised cash management without the specialised service of corporate banks or other financial institutions. The objective of the article is to present the growing role of such transaction services within corporate banks’ organisations, and also to group and to analyse the continuously improving and developing “netting”, “cash pool” and “information pool” banking products. It is a clear conclusion, that these services represent one of the most innovative and dynamically developing product-groups of contemporary corporate banks that need to keep up with the globalisation and regional expansion of their clientele. Finally, we present the main risk and regulatory considerations of product implementation.
KEYWORDS: corporate cash management, banking transaction services, cash pool, corporate banking
JOURNAL OF ECONOMIC LITERATURE (JEL) KÓD: G15, G21, G32