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Advantages of centralisation of treasury function

This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.

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December 14, 2023 at 9:17 am #696763
Diksha.19
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Necessary borrowings can be arranged in bulk , at keener interest rates than for smaller amounts
Does this mean that if for example , if I take loan of £1m the interest rate applicable will be 9% and if I take loan of £10m the rate applicable will be 7%
December 14, 2023 at 10:07 am #696771
John Moffat
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That may be possible. Equally (and maybe more obviously) they can arrange deposits in bulk and almost without doubt they will get better rates of interest on larger deposits.
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