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A simple funds transfer pricing model for a commercial bank

Thesis (M.M. (Finance & Investment))--University of the Witwatersrand, Faculty of Commerce, Law and Management, Graduate School of Business Administration, 2013. / This thesis addresses the core issue of Funds Transfer Pricing (FTP) that has been brought about by the dynamic nature in the changes in the financial industry. This research has drawn up elements from a systematic historical perspective of how a funds pricing policy has been carried out among the banks. The research has made use of the elements of classical economic theory to formulate a conceptual model that will assist in the understanding of the dynamics of the driving changes in Funds Transfer Prices.
In an effort to bridge the theoretical and empirical gap in classical economics and the value chain theory, a simple systematic model was constructed. This model was used to understand the dynamics of future changes in the Funds Transfer Pricing. This was done by first analysing the various components that have influenced the basic elements of the model. The basic elements are the liabilities, assets and the Treasury of banking institutions. The interaction of these elements forms the basis of the Funds Transfer Pricing model that was formulated. Using this model, banking institutions would be able to maximize profits and ensure customer satisfaction at the same time.
The simple model proposed handles the problems that are caused by the more complex methods used and offers a practical and simple approach to Funds Transfer Pricing in commercial banks.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:wits/oai:wiredspace.wits.ac.za:10539/13052
Date21 August 2013
CreatorsPushkina, Nataliya
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis
Formatapplication/pdf

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