Definition of Cash concentration
Concentration banks
Concentration mechanism
Frequency of transfer
Depository or lock-box banks
Regional concentration banks
Central concentration banks
1. Cash Concentration Strategies
Topic of discussion
•Definition of Cash concentration
•Concentration banks
•Concentration mechanism
•Frequency of transfer
PowerPoint Presentation By :
Md. Sifat Hasan
Studying Finance And Banking,
Jatiya Kabi Kazi Nazrul Islam University.
Information Collected From: Modern Working
Capital Management, Frederick C. Scherr)
2. What is cash concentration ?
The process of controlling funds is called cash concentration.
12. Schedule transfer
The firm decides on a predetermined time pattern of transfers from
the depository bank to the concentrate bank.
•Advantage : transfer system is very simple.
•Disadvantage: uneconomically small amount of fund may be made
13. Trigger point transfer
•Avoid the transfer of small amount by basing the transfer decision
on account balance rather than on timing.
14. Anticipated transfer
It is the method of decreasing the float within the transfer process.
In this method the transfer are launched based on anticipated
balance on the depository bank.