Target balancing is a technique that brings the balances of your accounts world-wide to a predetermined level by offsetting amounts above and below a predetermined target.  The target can either be zero or any other amount you determine.

Using target balancing achieves effective cash centralisation.  This has a double advantage : it leaves you with only one account to manage and it improves the net interest you receive on your balances since interest charges on overdrafts are reduced - or even cancelled - throught the levelling of negative balances.

However, it should be noted that target balancing may have some legal and fiscal consequences since inter-company transfers are considered as loans in some countries.

If you are in a situation where this is a problem, you should consider notional pooling instead of target balancing.