What is fund transfer pricing?

What is fund transfer pricing?

Your income statement is designed to calculate net-interest income for your entire bank. It is not designed to calculate the net-interest income of your products. In order to calculate net interest income for your products, your bank needs to take value away from its loans by using a funding rate -...

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Bibliographische Detailangaben
Veröffentlicht in:ABA Bank Marketing 2001-11, Vol.33 (9), p.48
1. Verfasser: Coffey, John J
Format: Artikel
Sprache:eng
Schlagworte:
Banks
Cost control
Funding
Interest income
Interest rates
Investment products
Lines of credit
Loans
Marketing
Pricing policies
Profit centers
Profitability
Profits
Transfer pricing
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Zusammenfassung:Your income statement is designed to calculate net-interest income for your entire bank. It is not designed to calculate the net-interest income of your products. In order to calculate net interest income for your products, your bank needs to take value away from its loans by using a funding rate - and add value to its deposits by using an earnings rate. This process is called funds transfer pricing.
ISSN:1539-7890
2332-9971