Products with undefined interest and capital commitment are frequently found in European universal banks’ product portfolios and the margin on these products is a major source of net interest income. Managing these products and the resulting interest risk position depends on a professional method of transfer pricing which is becoming more and more important due to several reasons:

  • Growing competition of banks for saving deposits due to expected regulatory requirements (e.g. LCR/NSFR) and the debt crisis, whereby pricing becomes a major factor of competition
  • Pressure of regulator on banks to sufficiently validate interest and capital commitment assumptions

We are looking forward to receiving your feedback! Please send your questions and suggestions to Patrick Haas at haas[at]

For download please login or register



A link to set a new password will be sent to your email address.

We use your personal data to carry out your order, to provide the best possible user experience on this website and for other purposes, which are described in our privacy policy.