Commercial Bank Cash Pool Management Research

As the expandation of multinational corporations, the demand of internal capitalcentralized management seems to increase currently. Expecially during the post-financialcrisis, the theory of “cash is the king”has already been believed and the capitalmanagement ability has been supposed as the key for success.At the same time,afterjointing the WTO,many of excellent overseas banks enter chinese financial markets aswell as bring the new cash pooling product which enlightens domestic commercial banksand has developed step by step.Cash pooling which is based on network technologyplatform is a new method of capital centralized management and has been put a lot ofimportance. As a kind of intermediary business,cash pooling can not only bring greatprofits to commercial banks,but also promote the improvement of banks’ comprehensiveservice capabilities which would be benificail with internal-banks strategictransformation.On the other hand,cash pooling which has the characteristics ofprofessional, personalized, comprehensive can meet corporations’ demand for cashmanagement as well as boost the long-term and stable development of industry.In this essay, I use several methods such as contrast and comparison,integration oftheory with practice,case study to make a clear defination of the meaning,featuring,operating mechanism as well as comparative analysis the difference of banks’ cashpooling products between home and overseas. Besides this essay focus on the problemsemerged during the promotiong of cash pooling in home financial markets.At last it bringabout final recommendations for the future development of cash pooling business fromthree aspects,which are:perfet the laws and policies,establish regulatorymechanisms,enhance the behavior of market micro player.