Target Balancing

Target Balancing, the ability to mobilize your cash, is an integral part of Citi Liquidity Management Services and Investments product suite. It is an automated process that concentrates end-of-day balances from a source account to a target account. These services are maintained in-country, regionally and globally, and encompass structures operating within a single branch or multiple branches throughout the Citi network. Third party target balancing is also available in several formats.

You can use the target balance account to centralize your funding for investment or incorporation of balances into an overlay pool.

Target Balancing enables you to:

• Increase the use of internal funds across domestic and off-shore accounts
• Minimize interest expense by offsetting debit and credit balances
• Maximize the return on excess liquidity
• Automate interest reallocation
• Reduce operating expenses
• Track you inter-account balances or intercompany loans via a suite of CitiDirect® Online Banking reports

One of the most common forms of target balancing is the Zero Balance Account (ZBA) structure, a basic cash management technique to consolidate account balances and reduce overdraft costs and risks.