Search
 
Best Practices

The Ins and Outs of In-house Banking

How regulatory and technological changes of the recent past have made the benefits more accessible to a broader swath of businesses.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Cost and process efficiencies remain top priorities for the finance function, but some organizations are passing up the opportunity to gain better control of companywide cash through in-house banking. IHB can help companies of all sizes improve process efficiency, reduce costs, and realize greater control over their cash. Still, there’s a great deal of resistance to in-house banking within some organizations, typically stemming from concerns about regulations, controls, and restrictions on intercompany relationships intended to block tax dodging.

It’s true that IHBs require extensive supporting documentation, as well as proof that relationships between affiliated entities are appropriately arm’s-length (e.g., appropriate interest rates on loans) to achieve regulatory compliance. Essentially, companies must take steps to prove that they aren’t using in-house banking to avoid taxes in the jurisdictions where they have operations. When they take these steps, the benefits are typically well worth the effort.

Trending Stories

 

Recommended Stories

Transfer Pricing Considerations in Light of Covid-19

Transfer Pricing Considerations in Light of Covid-19

Susan Fickling-Munge & Zachary Held |

Whether or not they’ve taken drastic steps such as restructuring, U.S. businesses are facing a changing environment that requires them to revisit transfer pricing policies.

Managing Working Capital Through the Crisis

Managing Working Capital Through the Crisis

T&R Staff |

As companies attempted to shore up liquidity amid the pandemic, the cash conversion cycle lengthened 13 percent. Here’s how to look at payables and receivables going forward.

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.