- 16 June 2023
- Thomas Murray
In 2021, 8% of cash correspondent banks told Thomas Murray that they only commit to clearing funds within eight hours or on the next business day after receipt of the funds. The findings revealed that the speed at which client cash is posted to accounts after clearance differs by country/region, and is significantly slower in the Asian and African markets.
Why should organisations be concerned about whether funds have cleared?
Firstly, your account may be in a cash deficit position. This could cost your organisation if you do not have an agreed overdraft limit in place and the overdraft costs can be substantial. Secondly, your account may be in a cash surplus position. If this is the case, then there may be large sums of money sitting in your accounts that could be invested, thereby earning interest. If you leave funds in your account for even a few days, a significant amount of potential interest could be lost.
Thomas Murray's Cash Corresponding Monitoring tool helps organisations to understand how quickly funds are cleared on accounts per country and region. By understanding how quickly funds are cleared onto your accounts, Treasury departments can accurately optimise and reduce costs.