Loan departments at banks do not get their funding directly from external sources but instead request the required funding from the bank’s treasury department. Treasury will quote a rate that it will charge for the funds provided. The term of the loan will also affect pricing. In general terms the longer the term of the [...]
Posted on September 26th, 2010 by admin
Filed under: Funding costs | Comments Off
In addition to external factors beyond the bank’s control loan pricing will be affected by inputs from other groups within the bank and by specific factors concerning a particular loan. The funding costs will depend on the bank’s deposit taking effectiveness and on the spread that treasury takes. From the lending department’s perspective this is [...]
Posted on September 21st, 2010 by admin
Filed under: Loan pricing, Loans | Comments Off
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