Gather funds together to form a storage space similar to a reservoir, which is usually used to raise funds for investment, real estate or insurance. Insurance companies have a huge pool of funds, which is balanced by the outflow of compensation funds and the funds of new policies. Banks also have a huge pool of funds, with loans and deposits coming in and out, which makes this pool of funds basically stable. The fund is also a pool of funds, with subscription and redemption. The inflow and outflow of funds make the funds available for investment in a relatively stable state.

Citibank

The definition of cash pool is that the cash pool structure is an automatic allocation tool for inter-enterprise fund management, and its main function is to realize centralized control of funds. The cash pool structure includes a main account and one or several sub-accounts. The automatic transfer of cash pool funds usually occurs at the end of the day, and the amount transferred depends on the end of the day and the target amount of each sub-account. In the end, the balance of each sub-account is the set "target balance", and all the remaining funds will be concentrated in the main account.

HSBC

In the 2006 Asia-Pacific Cash Management Guide, the definition of cash pool is: cash pool, also called total interest, offsets the balance of multiple accounts and calculates interest according to the net balance. This is to transfer the balance of multiple accounts through the transfer mechanism, so that funds can be substantially transferred and arranged centrally between accounts. The types of fund pools include zero balance account (ZBA), target balance account (TBA) and automatic investment account.