Finance Against Slavery and Trafficking and Funds transfer pricing: Difference between pages
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'' | ''Banking''. | ||
( | (FTP). | ||
Funds transfer pricing deals with the internal prices for funding, within a bank. | |||
FTP methodologies are important because they affect a bank’s internal profit allocation, and thereby influence business lines’ activities and appetite for risk. | |||
For example, if a bank's FTP leads to a lending unit's funding costs being underestimated, the lending unit may offer cheaper loans to customers - and expand lending volumes - in the mistaken belief that this lending is profitable. | |||
== See also == | == See also == | ||
* [[ | * [[IRRBB]] | ||
* [[ | * [[Transfer price]] | ||
Revision as of 13:58, 31 August 2016
Banking.
(FTP).
Funds transfer pricing deals with the internal prices for funding, within a bank.
FTP methodologies are important because they affect a bank’s internal profit allocation, and thereby influence business lines’ activities and appetite for risk.
For example, if a bank's FTP leads to a lending unit's funding costs being underestimated, the lending unit may offer cheaper loans to customers - and expand lending volumes - in the mistaken belief that this lending is profitable.
