Can anyone give a definition of "notional pooling"?

Answer 1

Notional pooling is a cash management service, enabling a company or a group of companies to obtain better interest conditions by virtually offsetting credit and debit balances.

Answer 2

Notional pooling provides a relatively flexible way of exploiting the benefits of cash pooling. With notional pooling, subsidiaries’ account balances are never actually balanced, but the group’s bank recalculates credit or debit interest based on the fictitious balance of the overall entity. This method yields exactly the same result as if the accounts had been perfectly balanced, but the fund transfers are never carried out in practice. As a result, this method leaves subsidiaries’ some room for manoeuvre and does not impact on their independence.