Funds Transfer Pricing in Commercial Banks: A simple Model: Chapter 5
5 A SIMPLE FUNDS TRANSFER PRICING MODELIntense competition in the financial services industry has reduced the potential of traditional operations to finance loans through deposits. The current situation forces to reconsider traditional approaches to improve the efficiency of banks: increased attention to the internal generation of bank capital, financial innovation, the search for new investment opportunities, reduce management costs, etc.One of the most significant innovations in banking - the creation of risk management measures was able to introduce risk transformation that are comprised of diversified risks as a result of the increasing number of borrowers. Risk sharing for instance allows ...