This article by Maarten dives into the concept of in-house banking (IHB) and its benefits for a corporation’s treasury department.

 

What does In-House Banking mean, and what are the benefits for Treasury?

An in-house bank (IHB) is a financial entity established within a larger corporation or group of companies to centralize and manage the treasury functions and financial operations of the entire organization.
Instead of each subsidiary or division managing its banking activities independently, the in-house bank consolidates cash management, liquidity, and financial transactions under one roof. By centralizing treasury functions, an in-house bank can improve efficiency, enhance visibility and control over cash flows, reduce banking fees, optimize interest income, and manage financial risks more effectively.
However, establishing and operating an in-house bank requires additional resources (a Treasury Management System), expertise, and regulatory compliance, particularly with respect to accounting, tax and the internal legal framework.

Summarized

In essence, an in-house bank acts like a financial center within a larger organization, centralizing the management of cash flow, liquidity, and financial transactions across all subsidiaries or divisions. This eliminates the need for each unit to manage its banking activities independently. If yo have more questions, feel free to

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