Liquidity Management

ABC offers RMB and foreign currency funds pooling solutions, to help customers enhance centralized funds management, allocate positions more flexibly, improve the efficiency in funds utilization, and reduce the financial costs. Customized solutions are also available.

RMB Funds Collection
ABC is able to make automatic transfer of funds among accounts based on the collection routes and conditions predetermined by the customer to enhance centralized funds management. The customer can, based on its own need for financial management, build an appropriate account system and set the collection conditions flexibly, including the cycle (daily, weekly, monthly, or on specified dates), the time (real time, end of day, or specified time in the day), and the method (by limit, percentage, rounding up, reverse, or weighted average), to make the accounts of members have zero balance or targeted balance. The customer may also collect its funds by itself through the Bank-enterprise Express to satisfy temporary needs for funds.

Multi-tier account systems are supported, and both bottom-to-top and top-to-bottom approaches are supported. The internal funds pricing and allocation specific to customer requirements are also available.

Procedures: The customer submits an application to ABC that sets out the requirement for centralized funds management, and then signs the cash management service agreement. The members of the customer group need to provide relevant authorization.

RMB Funds Pooling
ABC is able to help the group customer and its members to pool all available funds together in order to enhance centralized funds management. The funds pooling is shared by all members whose use of funds will not be impacted while the funds are managed centrally and the efficiency in utilization is improved. The group accounts and accounts of the group members are linked to each other and balances inquires may be made in real time.

Multi-tier account systems are supported, and internal funds pricing and allocation specific to customer requirements are also available. The sub-accounts are maintained with zero balance while the payment controls can be preset flexibly, including expenditures based on revenue, centralized expenditure and revenue management, and setting of expenditure limit.

Procedures: Please refer to the procedures for RMB funds collection services.

Foreign Currency Funds Pooling
Under the current framework for foreign exchange regulation, ABC can establish a centralized foreign currency funds management system for the customer. With the system, the funds in foreign currencies can be collected daily or regularly while the member accounts are eligible for intraday overdraft payment and unified clearing at the end of the day. This maximizes the efficiency in funds utilization and minimizes the financial costs.

Procedures: Please refer to the procedures for RMB funds collection services.

Multi-tier Accounts
ABC is able to help the customer conduct tier-based management of the settlement account funds and establish multi-class, multi-tier ledgers under the same account to record the details of revenues, expenditures, and deposit balances. This enables sophisticated management of the account funds.

There is no limitation on the classes or tiers of the books, and the functions of inquiry, statistics, payment control, and separate pricing are available for all users of this service.

Procedures: The customer submits an application to ABC, and signs the relevant agreement.