Funds transfer pricing in banking: the cashflow and capital congruent market opportunity in the marktzinsmethode

E. IJskes

Research output: Working paper / PreprintWorking paperProfessional

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Abstract

This paper aims at describing the Marktzinsmethode as it developed in German literature.Attention will be paid to the reasons for developing a market-based funds transfer pricingsystem. The opportunity principle will be introduced as a means of assigning interest income.As a result of the use of the opportunity principle three sources of interest income arerecognized: interest income from loans, deposits, and maturity mismatch, as will be illustratedwith an example.
Original languageEnglish
Place of PublicationAmsterdam
PublisherFaculty of Economics and Business Administration, Vrije Universiteit Amsterdam
Publication statusPublished - 1995

Publication series

NameResearch Memorandum
No.1995-14

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