Funds transfer pricing in banking

Maria CARACOTA Dimitriu () and Sorina Cristina Oaca ()
Additional contact information
Maria CARACOTA Dimitriu: The Bucharest Academy of Economic Studies, Romania
Sorina Cristina Oaca: The Bucharest Academy of Economic Studies, Romania

Economia. Seria Management, 2010, vol. 13, issue 1, 119-127

Abstract: Every bank needs to better understand the sources of its profitability. Whatever the size of the bank, funds transfer pricing (FTP) can be used to help managing the bank's profitability by analyzing earnings for the whole institution or for different profit centers. In today’s banking environment, it is essential to look at the earnings both as a whole and broken down into various components. Funds Transfer Pricing is an analysis tool that can be used to help a bank measure its profitability in a variety of different ways. It allows management to compare the profitability of different product lines within the company, and it can be drilled down even further to allow comparison between individual employees. It is also very useful for comparison between branches. This study will reveal the role of Fund Transfer Pricing (FTP) in banks.

Keywords: funds transfer pricing; profit; bank; business units (search for similar items in EconPapers)
JEL-codes: G21 G32 (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.management.ase.ro/reveconomia/2010-1/11.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rom:econmn:v:13:y:2010:i:1:p:119-127

Access Statistics for this article

Economia. Seria Management is currently edited by Ciocoiu Nadia Carmen

More articles in Economia. Seria Management from Faculty of Management, Academy of Economic Studies, Bucharest, Romania Contact information at EDIRC.
Bibliographic data for series maintained by Ciocoiu Nadia Carmen ().