[stephenkhoo]

Corporate treasurers today find themselves in uncharted and turbulent waters. They’re navigating internal pressures and external forces that are creating deep structural change in the banking industry - and that call for renewed strategies for running efficient global treasury operations. Today, many treasurers are once again embracing the Earnings Credit Rate (ECR) as a practical and versatile way to strengthen corporate income statements and manage liquidity. This value will only increase as banks broaden the range of Earnings Credit (EC)-eligible service fees and apply the concept globally across entities, geographies and currencies.

The Earnings Credit is a calculation of the return that banking customers earn on funds held overnight in a demand deposit or current account at the specified Earnings Credit Rate. Rather than receiving hard interest, depositors receive this return in the form of an ‘earnings credit allowance’, which is then automatically applied against bank service charges.