Funds transfer pricing and Negative yield curve: Difference between pages

Revision as of 10:45, 13 November 2015

A situation in which market interest rates for longer term funds are lower than those for shorter maturities.

Also known as an Inverse yield curve.

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-''Banking''.
+A situation in which market interest rates for longer term funds are lower than those for shorter maturities.
-(FTP).
+Also known as an Inverse yield curve.
-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 funding costs being underestimated, the bank’s lending unit may offer cheaper loans to customers - and expand lending volumes - in the mistaken belief that this lending is profitable.
 == See also ==
-* [[IRRBB]]
+* [[Forward yield]]
-* [[Transfer price]]
+* [[Zero coupon yield]]
+* [[Par yield]]
+* [[Inverse yield curve]]
+* [[Yield curve]]
+* [[Falling yield curve]]
+* [[Flat yield curve]]
+* [[Positive yield curve]]
+* [[Rising yield curve]]