Group treasury
In-house bank
An in-house bank is the group's treasury behaving like a bank towards its own entities. It holds each subsidiary's balance, pays interest on surpluses and charges on shortfalls, and lends between them — all on notional balances, without cash actually leaving the group.
Intercompany loans and arm's-length rates
When one entity lends to another, tax authorities require the interest to be an arm's-length rate — the rate two unrelated parties would have agreed. A group cannot move profit around by lending to itself too cheaply or too dearly.
The platform builds each internal rate the way an auditor would want to see it: a market benchmark (such as SOFR) plus a credit spread that reflects the borrowing entity's standing. The two add up to the rate charged, and both parts are shown, so the price is defensible on paper.
No cash leaves the group
The loans live on the in-house bank's notional balances. No physical payment moves between subsidiaries — but the interest is real, accrues daily, and is the transfer price the group reports. It is bookkeeping with teeth.
Good to know
Credit interest is what the in-house bank pays an entity in surplus; debit interest is what it charges one that is short.
The rate build-up on each loan is shown as benchmark plus spread precisely so a tax review can follow it.