A bank within a bank: how a commercial bank’s treasury function affects the interest rates set for loans and deposits

Fabrizio Cadamagnani (), Rashmi Harimohan () and Kumar Tangri ()
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Fabrizio Cadamagnani: Bank of England
Rashmi Harimohan: Bank of England
Kumar Tangri: Bank of England

Bank of England Quarterly Bulletin, 2015, vol. 55, issue 2, 153-164

Abstract: Banks determine the interest rates on loans and deposits through an internal pricing approach that seeks to take account of the relevant costs and risks of their business. This article focuses on ‘funds transfer pricing’ (FTP), a key component of banks’ internal pricing methodologies. It discusses issues in some banks’ FTP practices, the impacts of economic and regulatory developments on FTP, and some potential implications for monetary and financial stability

Date: 2015
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:boe:qbullt:0173

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