Funds transfer pricing and Rating agencies: Difference between pages

Revision as of 15:32, 20 August 2013

Independent organisations that assess credit the quality of corporate and government debt.

The main agencies are Moody’s, Standard & Poor’s and Fitch.

@@ Line 1: / Line 1: @@
-''Banking''.
+Independent organisations that assess credit the quality of corporate and government debt.
-(FTP).
+The main agencies are Moody’s, Standard & Poor’s and Fitch.
-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.
+== See also ==
+* [[AAA]]
+* [[Credit rating]]
+* [[Ratings]]
+[[Category:Treasury_operations_infrastructure]]
-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 ==
-* [[IRRBB]]
-* [[Transfer price]]