Standing orders and cash pooling services

By using standing orders you can give an instruction to Citibank to regularly (e.g. daily, weekly, monthly, etc) transfer fixed or variable amounts to a destination account. The bank fulfils these instructions automatically in line with the initial former requirements.

The following standing orders are offered by Citibank:

• Regular transfers of fixed, pre-determined amounts
• Target balance pooling services

Standing orders can be submitted in any foreign currency, and its frequency can be daily, weekly, monthly or annual yearly.

Liquidity management - Pooling services

Upon your requests pooling services can be set up with reverse, so the sweeps made at the end of the day are reversed at the beginning of the next day whilst the advantages of pooling can be still used.

In order to optimize your company's liquidity management these structures have to reflect the companys specific needs and organic framework. To set an optimal (either multi-layered or international) pooling structure our Bank is kindly available for you.

Further information

1. Standing orders of fixed amounts
2. Target balance pooling
3. Minimum target balance pooling (balance increased to a target value)
4. Maximum target balance pooling (balance reduction to a target value)
5. Cash pooling to a target balance Interest reallocation

1. Standing orders of fixed amounts

Citibank is able to process transfers of fixed amounts in pre-determined frequency in any foreign currencies quoted by the bank. This method does not require you to submit individual instructions each time.

Examples: fixed monthly fees, advertisement fees posted weekly, monthly instalments, utility payments

2. Target balance pooling

This service is offered to corporate clients who possess more Forint accounts or have several accounts led in the same foreign currency. Citibank's Cash Pooling offers you an automated solution to optimize liquidity management, interest expenses and revenues across your operating accounts. Citibank offers numerous pooling products, which fit your business needs and organic structure. Some structures, which might be proper for your company are described below:

Minimum target balance pooling (by increasing account balance to a target value)

The balance of your main account will be filled up from another account in order to achieve the defined minimum level, as long as the balance of the main account is below the defined level.

Examples: the balance of the subsidiary should always be at least HUF 10 Million.

Maximum target balance pooling (by reducing account balance to a target value)

The balance of your account will be reduced by sweeping the surplus balance to an other account in order to reach the defined level.

Examples: the balance of the subsidiary should not exceed HUF 20 Million.

Target balance pooling

The fixed target balance of the account is a combination of the minimum and maximum target balancing structure. T where the target amount can be previously defined by you in advance. Such an arrangements are would be usedful to keep a fixed target balance every day on the sub-account by either sweeping only the excess funds to a master account or off-setting its negative balance with positive balances on other accounts at the end of the day.

Examples: the balance of the sub-account should be HUF 1 Million at the end of each day or the pooling of the sub-account balances on a main account at the end of the day.

3. Interest reallocation

Interest split-up among the participating sub-accounts is an important factor of pooling services. Citibank also provides interest reallocation report and upon request we also book the proportioned interest on the participating accounts.