Following its last acquisition, an MNE now owns more than $20$ subsidiaries. Some of these subsidiaries also have foreign subsidiaries and regional treasury centers. The group of entities are in different continents and majority of them deal with several banks. The treasurer, of this large MNE, sees the needs to reduce the number of banks and of regional treasury departments. He has undertaken the restructuration of the Treasury Department. This department will join two other internal departments to form a center providing services to all the subsidiaries, such as taxation, payroll, cash management. How is called this newly adopted form of centralization and what are the benefits?

A$.$ The treasurer has chosen a centralized treasury which will become a Center of Expertise to service the regional treasury centers. Each regional treasury center will organize a notional cash pooling per continent. This will give the possibility to reduce the precautionary balances, negotiate the bank charges on a larger volume.

B$.$ The treasurer has chosen a centralized treasury in the form of a Shared Service Center. This will give the possibility to better manage the financial risks. The treasurer will be able to save on banking fees with the cash pooling using the zero$-$balance account. Centralizing the cash with one bank will provide the possibility of negotiating all the banking charges and interest rate on a larger volume.

C$.$ The treasurer has chosen a centralized treasury in the form of a Shared Service Center. This will give the possibility to realize economies of scale and creating a center of expertise. The treasurer knows he will be able to save banking fees with the cash pooling on a notional basis. The main bank, the MNE is dealing with, can provide a daily consolidated report for all the subsidiaries$$ bank accounts held at that specific bank. Therefore, the treasurer believes the said bank could do the same for all the subsidiaries.

D$.$ The Treasurer chose a central treasury at the parent company level. Central treasury will be able to achieve economies of scale using netting and a cash pooling of its choice.