ABSTRACT
This chapter looks at the money transmission and other products that banks offer and that impact on liquidity management. Methods of transmitting money fall into three categories, namely cash in the form of notes and coins, paper based cheques and some credit card transactions, and electronic such as wire payments or Bacs Payment Schemes Limited (BACS). Transaction banking involves taking each item of business to whoever offers the keenest price. The relationship between a customer and its banker ideally can be a partnership. If large sums have to be sent or received, then various forms of electronic payment are worth considering. Zero-balancing implies a high degree of centralisation, but it also means that it can be more difficult for individual subsidiaries to track their own cash flow. However, banks have a role to play in providing information about the business in a form that the business can use.
