Definition of bank pool
Used within the jargon of terms referred to in relationships ‘bank – company’ describes the group (from the English ‘pool’) or set of financial entities that are suppliers of debt and financial services of a company or economic unit in general.
It is very valuable information and demanded by the financial sector in the study of credit or risk operations with companies; since it expresses the type of operations (loans, credit, leasing, guarantees, ….), the guarantees (personal, real, …) as well as the limits or amounts available and maturities.
In Spain, there is a public service called CIRBE and managed by the Bank of Spain in which all risk transactions between banks and their customers are recorded, which could be a good example of this type of information.
It can also be used in other contexts, such as cash pooling or ‘Cash Pooling’ systems, which, although they have many modalities, basically consist of a company concentrating in a single bank (pool bank) the balances of its different positions in another series of banks to handle a single balance and cash position.
Francisco Isidro Núñez, Director of Finance and Management Control Programs at EAE Business School, Madrid campus
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