Chapter 4 - Treasury Flashcards
1
Q
What is the main role of treasury management in a banking operation?
A
To demonstrate knowledge and understanding of treasury activities in a banking operation.
2
Q
How do banks profit from borrowing short and lending long?
A
Banks profit by borrowing short-term deposits at lower costs and lending long-term loans at higher rates.
3
Q
What types of risks does a bank manage when making a loan?
A
- Interest-rate risk
- Liquidity risk
- Credit risk
4
Q
How do banks and insurance companies differ in managing liquidity risk?
A
Insurance companies match assets to liabilities based on fixed contracts, while banks may mismatch loan durations with funding durations.
5
Q
What is maturity transformation in banking?
A
It refers to the practice of borrowing short-term funds to lend long-term loans, contributing to bank profitability.
6
Q
What is the purpose of high-quality liquid assets (HQLAs) in a bank?
A
To generate cash during a banking crisis.
7
Q
What regulatory framework sets out the requirements for HQLAs?
A
Basel III rules.
8
Q
What is the front book and back book in treasury management?
A
- Front book: New loans and funding
- Back book: Existing loans and funding that are maturing
*** add costs loaded on front book vs back book
9
Q
What is term liquidity premium (TLP)?
A
It reflects the additional cost over a reference base rate at which the bank can borrow funding over different durations.
10
Q
True or False: A normal yield curve is downward sloping.
A
False.
11
Q
What happens to a bank’s net interest margin when it borrows short and lends long?
A
It increases.
12
Q
What is the role of the asset-liability committee (ALCO) in a bank?
A
To oversee balance sheet structure, capital management, and funding profiles.
13
Q
What is the typical chair of the ALCO?
A
Chief Financial Officer.
14
Q
What does treasury allocation (TA) refer to?
A
The process of passing on central entity obligations to the business lines.
[Add aspects of TA]
15
Q
What is the liquid asset buffer (LAB)?
A
A portfolio of HQLAs maintained to mitigate liquidity risk.
16
Q
What is the consequence of a bank holding a liquidity buffer?
A
It reduces the value of some deposits as the bank cannot lend all of them.
17
Q
What is the primary purpose of internal funds pricing?
A
To charge each business line for its cost of liquidity.
18
Q
What is the significance of the TLP curve in a bank’s pricing strategy?
A
It helps to calculate the appropriate cost of fully term-matched funding for a given loan.
19
Q
What is the impact of the 2007/8 financial crisis on banks’ funding practices?
A
It accelerated the move to proper internal funds pricing methodologies to reflect liquidity risks.
20
Q
What is the typical meeting frequency for the ALCO?
A
Monthly and ad hoc as required.
21
Q
Fill in the blank: The fundamental role of banks in the economic system is ______.
A
[duration transformation].
22
Q
What does the ALCO mandate include in terms of risk management?
A
Identifying, managing, and controlling the bank’s balance sheet risks and capital management.
23
Q
Who is responsible for the implementation of ALCO strategy and policy?
A
The ALCO itself.
24
Q
What is the primary function of the Committee’s oversight?
A
To monitor and manage balance sheet risks of the bank
This includes ensuring consistency across Treasury issues and establishing risk appetites.
25
What does the Committee approve in relation to significant transactions?
Significant transactions where appropriate
## Footnote
This ensures adherence to Board decisions and policies.
26
What is the role of the Committee in capital management?
Monitor RWA trends and oversee actions to optimise RWA levels
## Footnote
RWA stands for Risk-Weighted Assets.
27
What are the two types of risks the Committee establishes limits for?
* Non-Trading Interest Risk
* Foreign Currency Exposure
## Footnote
These risks require a defined risk appetite and business limits.
28
What does the Committee review concerning liquidity and funding?
Liquidity and funding positions by business against limits
## Footnote
They also approve excesses as required.
29
What is the purpose of the internal funds pricing regime (FTP)?
To manage liquidity risk and interest-rate risk within the bank
## Footnote
FTP helps centralize these risks in the treasury function.
30
True or False: The ALCO should meet at least every four weeks.
True
## Footnote
Regular meetings help embed risk management culture.
31
What is the governance structure's significance for ALCO?
It must reflect its importance as a primary risk management committee
## Footnote
This includes having stable yet flexible membership.
32
Fill in the blank: The treasury department is responsible for _______.
[managing balance sheet risk and liquidity risk]
## Footnote
This includes daily cash management and ensuring compliance with policies.
33
What do trading book exposures require compared to banking book positions?
Active management for short-term gain
## Footnote
Banking book positions are held for the long term.
34
What is a key function of the treasury in liquidity management?
To meet the bank’s liquidity needs throughout the cycle
## Footnote
This includes formulating liquidity policy statements.
35
What does the FTP rate represent?
The price at which a lending business line raises funds from its treasury desk
## Footnote
It influences performance measurement and capital allocation.
36
What is one outcome of an inappropriate internal funds pricing policy?
Distorted view of risk and earnings attributions
## Footnote
This can lead to poor business decision-making.
37
What does ALCO stand for?
Asset-Liability Committee
## Footnote
It is responsible for managing mismatch positions regarding liquidity risk and interest-rate risk.
38
What is meant by liquidity risk appetite?
The level of liquidity risk the bank is willing to accept
## Footnote
It is established by the board and operationally managed by ALCO.
39
What are some types of interest-rate risk that ALCO evaluates?
* Re-pricing risk
* Basis risk
* Yield curve risk
* Option risk
## Footnote
These risks are evaluated relative to earnings and capital.
40
True or False: The board must own liquidity risk management policy and procedure.
True
## Footnote
The board is ultimately responsible for liquidity risk governance.
41
What does the treasury function typically encompass?
* Balance sheet management
* Liquidity risk management
* ALM
## Footnote
These functions are crucial for financial stability.
42
What is the relationship between treasury teams and trading?
They are closely linked to money market teams for managing liquidity
## Footnote
This reflects the interaction between treasury and trading functions.
43
What does the FTP process enable business units to do?
Correctly price for the IRR and liquidity risk that they bring on to the balance sheet
44
How do retail banks in the UK primarily fund themselves?
Using retail deposits
45
Why is it difficult for UK retail banks to price their lending based on the bank’s wholesale cost of funding?
It would make their pricing highly uncompetitive in the market
46
What type of risk arises from banks undertaking maturity transformation?
Uncertainty
47
What must be correctly priced each time an asset is originated?
Term liquidity risk and IRR
48
What is the importance of the FTP rate in business decision-making?
Drives business decision-making by addressing liquidity stresses
49
Why must there only be one internal funding desk at a bank?
To ensure uniformity in FTP policy and adherence to group operational procedure
50
What is a key benefit of having a formal FTP policy?
It makes explicit the need to cover the cost of liquidity risk and IRR
51
What does the TLP curve represent?
Spreads relative to a pre-defined base rate at which the bank can raise senior unsecured funding
52
What is the FTP rate formula for floating rate products?
FTP rate = base rate + TLP
53
What is the base rate usually based on for floating rate products?
The overnight risk-free rate
54
What is the FTP rate formula for fixed rate products?
FTP rate = swap rate + TLP
55
What does the swap rate in fixed rate products represent?
The repricing profile of the product
56
What is a minimum risk-adjusted return-on-capital (RAROC) target?
A target that business lines seek to achieve for their transactions
57
What is the impact of unrealistic internal fund costs?
Transactions may produce unrealistic profits
58
What are non-maturity deposit (NMD) products?
Transactional accounts and savings accounts that banks use to raise funding
59
What impacts the stability of funding from retail deposits in South Africa?
Low savings culture and competition from pension funds and asset managers
60
What is the maximum tenor generally limited to for funding provided by NMDs?
5 years
61
What does the modelling of NMDs need to account for?
HQLA requirement for the bank
62
What should be considered when developing behavioral models for NMDs?
* Historical behavior
* Macro-economic environment
* Bank’s pricing strategy
* Marketing strategy
63
What do lending facilities require in terms of liquidity management?
Modeling the usage of credit facilities to understand expected liquidity strain
64
What is optionality in banking products?
Built-in features that allow clients to alter the terms of their agreements
65
How can client prepayment behavior affect the bank?
It can reduce expected net interest income (NII)
66
What happens to the cost of implicit interest floors in negative interest rate environments?
It can be costly for the bank
67
How are trading books typically funded?
Self-funded under normal conditions
68
What must be allowed for when funding the trading book?
Cost of HQLA held to hedge contingent liabilities
69
What is trading liquidity commonly measured by?
Proxies such as price bid-offer spread, trading volume, market turnover, average daily trading frequency, average quote size, average trade size, theoretical yield spread
## Footnote
A narrower spread indicates a more liquid market.
70
What complicates the measurement of funding liquidity?
It involves both market liquidity and TLP specific to one bank.
71
How is TLP calculated for larger multinational banks?
Using transparent and accurate market prices for their secondary market debt and money market instruments.
72
What should banks consider when setting their funding liquidity measure?
A range of proxies.
73
What does 'stress' refer to in the context of liquidity for banks?
The increased cost of liquidity due to systemic or idiosyncratic risk events.
74
What is the purpose of an FTP mechanism?
To set the internal funds curve and ensure accurate project appraisal and profit reflection.
75
Should the FTP curve be blended with additional business incentives?
No, it should be clearly ring-fenced.
76
What does TLP represent in relation to FTP rates?
The credit spread priced in the bank’s senior unsecured debt.
77
What can cause the TLP to change quickly?
Changes in perceived credit risk and macroeconomic downturn events.
78
Why is it difficult for smaller banks to identify changes in their TLP curve?
Their senior unsecured debt is not as actively traded.
79
What is the relationship between new TLP and legacy TLP positions?
New TLP is fixed at inception, while legacy positions are locked into origination cohorts.
80
What is an example of pricing term liquidity when a bank can borrow at 3-month Libor-flat?
The TLP can be zero if lending is on a match-funded basis.
81
What creates liquidity risk in a bank's asset-liability gap?
The need to roll over funding continuously.
82
What does a TLP of 50 bps signify in the context of liquidity stress?
The difference between expected payment on senior unsecured debt and the swap rate.
83
What is the TLP curve's significance for a bank's treasury?
It shows the spreads priced on funding across different tenors.
84
What does the FTP regime ensure regarding liquidity and interest-rate risk?
It centralizes these risks in treasury, removing them from business lines.
85
What is the critical funding gap period emphasized by the UK Prudential Regulatory Authority?
2-week and 90-day funding gaps.
86
How do banks typically operate in terms of funding their loans?
They rarely match fund their loans.
87
What is the formula for calculating TLP applied to an amortising instrument?
Instrument TLP = ∑t t × projected capital cashflowt × TLPt / ∑t t × projected capital cashflowt
88
What happens during a liquidity crisis regarding funding gaps?
Any gap is fatal regardless of size.
89
Why is it necessary for FTP rates to reflect the underlying economics of transactions?
To ensure accurate pricing and avoid blending SVA between business and treasury.
90
What does a positively-sloping TLP curve indicate?
The bank's cost of liquidity relative to its external senior unsecured funding cost.
91
What does the FTP regime manage?
The price-setting process to reflect the gap profile.
92
What is the primary purpose of the FTP regime?
To ensure liquidity risk and interest-rate risk are centralized in treasury.
93
What does the FTP regime ensure regarding asset pricing?
It reflects the true extent of liquidity risk and IRR generation from asset origination.
94
True or False: The FTP mechanism mitigates liquidity risk.
False.
95
What measures must address liquidity risk and IRR in a bank's normal operations?
Terming out funding, maintaining a liquidity buffer, and using derivatives.
96
What is the behavior of funding from retail banks due to NMDs?
It should exhibit a steady state.
97
How should deposit-taking business units be rewarded?
Based on the behavioral tenor of the funding they provide.
98
What is the purpose of an 'enablement portfolio' in a bank?
To assist asset-side business units while pricing lower than the market.
99
What is the relationship between retail and corporate banking in terms of deposits?
Retail banks have cheap, stable funding; corporate banks have lower liquidity value.
100
Why do corporate deposits create a more volatile funding pool?
1. Fewer corporate clients lead to larger deposits from a smaller number of entities.
2. Corporate clients are more price sensitive
3. Relationship management to corporate products
101
What is TLP calculated as a function of?
The FTP curve and the swap curve.
102
What does the FTP curve represent?
The term structure of the bank’s senior unsecured funding rates.
103
What is the base rate commonly used in South Africa for funding instruments?
3-month Jibar.
104
What does the difference between the FTP rates and the swap curve represent?
The credit spread associated with the bank.
105
Fill in the blank: The FTP rate from treasury charged to corporate banking division is FTP = _______.
3-month Libor (Base Rate) + TLP.
106
What should the base rate reflect for financial products?
The underlying level of interest rates in the market.
107
What is the primary input for a bank's internal funding curve?
The rate at which the bank can raise funds in the market.
108
What proxies can be used to calculate TLP?
* Difference between bond rate and swap rate
* Difference between paying fixed on a term interest-rate swap and OIS
* Increase in cost of funds for each incremental upward change in tenor.
109
What does a CDS spread represent?
The price of credit only.
110
What is the 'pure' liquidity premium for a bank?
The difference between the bank’s CDS spread and the asset-swap spread.
111
What is the true or 'fair value' TLP difficult to observe?
Because COF incorporates both perceived credit risk and term premium.
112
What is the implication of a lower FTP rate for deposit franchises?
It could lead to overstated earnings for asset business lines.
113
What is the result of ignoring maturity transformation in FTP calculations?
FTP = COF.
114
What does the TLP represent in the context of FTP?
Both credit risk and liquidity risk.
115
What does a bank need to consider when setting the FTP rate?
Commercial and practical reality.
116
True or False: Smaller banks can easily extract TLP from market and customer rates.
False.
117
What is the implication of a 'zero-FTP spread'?
It can only be justified on a match-funded basis.
118
What is the 5-year TLP based on the average of the given inputs?
40–50 bps
## Footnote
The average is 43 bps and the median is 45 bps.
119
What are the four inputs for the 5-year TLP mentioned?
* 6 bps
* 53 bps
* 132 bps
* 103 bps
## Footnote
These inputs are derived from different market conditions.
120
What market instruments are well-developed in South Africa?
* Floating-rate notes
* Negotiable certificates of deposit
* Capital markets funding instruments
## Footnote
These instruments contribute to the TLP in South Africa by determining the spread.
121
What should be included in a bank's funding policy document?
The actual internal funding curve template, be it the TLP or all-in FTP curve
## Footnote
This should be reviewed regularly.
122
What is the standard overnight FTP charge when a loan is made?
3-month Libor
## Footnote
This may vary to 1-month Libor or 6-month Libor based on the bank's ALCO opinion.
123
What is the behavior of retail customer funding compared to other types?
More stable in nature
## Footnote
A large proportion is non-interest-bearing liabilities.
124
How is the FTP rate for retail assets generally set?
Using the expected behavioral life tenor
## Footnote
This is typically shorter than the contractual term.
125
What does a net-charging regime entail?
Funding provided by a subsidiary business unit is first used to offset the funding needed for its assets
## Footnote
This allows for nearly matching tenors, e.g., 3-year deposits against 3-year assets.
126
What does the FTP curve explicitly state?
The rate paid or received by business lines for assets and liabilities across the term structure
## Footnote
This reflects the bank's pricing strategy.
127
What is the expected life of residential mortgages in South Africa?
Around 7 years
## Footnote
Most mortgages are issued with a contractual term of 20 years.
128
How is the FTP charge set for trading book assets?
According to the expected holding duration
## Footnote
Typically set at the 6-month FTP rate.
129
What is the price elasticity formula?
Price elasticity = % change in volume / % change in price
## Footnote
This helps banks understand the impact of rate changes on deposit volumes.
130
What might happen if a retail bank imposes a TLP curve on its pricing decisions?
It could create a strategic problem leading to mispricing of loans and deposits
## Footnote
This can result in unbalanced growth.
131
What is the relationship between average cost and marginal cost in the wholesale funding market?
They are almost equal
## Footnote
This is due to the high price elasticity of the wholesale market.
132
What does the term 'cannibalisation' refer to in retail deposits?
The process where retail deposits switch from low-interest to higher-interest accounts
## Footnote
This affects the bank's ability to attract new deposits.
133
What are some examples of behavioral analysis in determining FTP rates?
* Residential mortgages
* Current accounts
## Footnote
These examples illustrate how contractual terms may differ from expected life.
134
What is the role of ALCO in determining FTP policy?
It decides the final choice of the FTP policy
## Footnote
The policy is influenced by the bank's balance sheet shape and structure.
135
How does a self-funded retail bank manage its loan pricing?
By focusing on managing the interest spread between its loans and deposits
## Footnote
This approach helps maintain competitive positioning.
136
What is the price elasticity of savings deposits?
The price elasticity of savings deposits indicates how much the volume of savings changes in response to a change in interest rates. For example, a 25% elasticity means a 1% change in price results in a 0.25% change in volume.
137
How much does the bank need to increase the savings rate to achieve a 5% increase in savings volumes?
The bank needs to apply a 20% increase in the savings rate, from 0.5% to 0.6%.
138
What is the average cost of all deposits after the increase in savings rate?
The average cost of all deposits is 0.6%.
139
What is the formula for calculating marginal cost?
Marginal cost = (increase in interest paid) / (volume of extra deposits gathered).
140
True or False: A retail bank can lose money if the marginal cost of deposits exceeds the interest rate earned on additional lending.
True.
141
What tactic do banks commonly use to reduce the marginal cost of additional deposits?
Banks often introduce new products with higher interest rates, sometimes with temporary bonus rates.
142
What is cannibalisation in the context of bank deposits?
Cannibalisation occurs when new deposits attract existing savings into a new product, reducing the overall benefit to the bank.
143
What type of savings products can be offered to price-sensitive customers?
Banks can offer alternative savings products like 30-day, 60-day, or 90-day deposits.
144
What are term deposit accounts?
Term deposit accounts lock in savings for an agreed period, such as 12, 24, or 36 months.
145
How can banks optimize pricing for term deposits?
Banks can introduce automatic reinvestment programmes and manage interest rates across different terms.
146
What is the effective duration of long-term fixed-rate mortgages influenced by?
The effective duration is influenced by early repayment rates and changes in interest rates.
147
What happens to the average duration of mortgages if interest rates fall?
The average duration generally shortens as customers find it cheaper to re-mortgage.
148
What design aspect helps UK banks reduce interest-rate risk in mortgages?
Introducing an initial deal period that fixes the customer rate for a specified time before reverting to a standard variable rate.
149
What is the typical average duration of a UK mortgage compared to the initial deal period?
The average duration is typically 6–12 months longer than the initial deal period.
150
What is the recommended approach for corporate banking funds transfer pricing (FTP)?
The orthodox approach involves transferring liquidity and interest-rate risk to treasury, assuming all assets are funded at the short-term FTP rate.
151
What is the key management point regarding fixed-rate assets in corporate banking?
Fixed-rate assets should be hedged with cash fixed-rate liabilities to minimize basis risk.
152
What are the types of funding sources in wholesale banking?
Wholesale banking is often funded with repo and wholesale unsecured funding.
153
How does the FTP model differ for trading book assets?
Trading book assets are funded at the repo rate or unsecured money market rates, depending on liquidity levels.
154
What is a securitisable asset in the context of FTP?
Securitisable assets are those eligible for securitisation, which may receive a lower funding rate due to reduced funding needs.
155
What are derivatives in the context of corporate banking FTP?
Derivatives involve contractual and collateral funding cashflows modelled into tenor buckets based on expected exposure.
156
What is the purpose of the FTP mechanism in banks?
The FTP mechanism describes the specific nuances of the funding regime for each product type.
157
What happens to large transactions in the FTP process?
Large transactions may have their own FTP rate transacted at the time of the deal.
158
What is FTP in banking?
FTP stands for Funds Transfer Pricing, a mechanism to allocate funding costs across various products and services offered by a bank.
## Footnote
FTP helps in determining the internal price of funds to support the bank's profitability and risk management.
159
What are the types of funding policies in FTP?
The types of funding policies include:
* Banking book funding policy
* Trading book policy
* Derivatives funding policy
## Footnote
These policies outline the specific nuances and considerations for each product type.
160
How should undrawn commitments be priced?
Undrawn commitments should be priced based on the liquidity risk they represent, differing by customer type.
## Footnote
Bank and non-bank financial institutions represent greater liquidity risk compared to small corporates.
161
What does a committed standing backup facility represent in terms of liquidity risk?
It represents the highest risk to a bank’s liquidity stress position.
## Footnote
Hence, the FTP for this facility must be set as term FTP.
162
What is the importance of the FTP policy for committed facilities?
The FTP policy is crucial for internal funds pricing and ensuring appropriate charges for liquidity risk exposure.
## Footnote
It must reflect the expected usage profile during stress periods.
163
What is the distinction between term funding (TLP) and interest rate conventions?
Term funding (TLP) refers to the bank's funding strategies, while interest rate conventions involve fixed versus variable rates.
## Footnote
This distinction is often overlooked in insurance contexts.
164
How do banks manage interest rate risk related to loans?
Banks may use interest rate swaps to exchange fixed-rate payments for variable-rate payments to hedge against interest rate risk.
## Footnote
However, this does not eliminate liquidity risk.
165
What is a key difference in funding strategies between retail and investment banks?
Retail banks raise term funds at below their wholesale cost of funds (COF), while investment banks often raise term funds at the marginal COF.
## Footnote
This impacts their lending strategies and profitability.
166
What factors influence the FTP grid for different banking sectors?
Factors include:
* Incentives set by senior management
* The sectors the bank wishes to focus on
## Footnote
Different sectors may have unique funding characteristics.
167
Why is regular review of FTP policies recommended?
Regular review ensures the policy and related FTP rates remain up to date and appropriate for changing market conditions.
## Footnote
It is recommended to review the policy annually and the pricing grid at least quarterly.
168
What does an 'ALM smile' funding profile indicate?
It indicates a match-funded position where the FTP curve is set parallel below the bank’s COF curve.
## Footnote
This reflects acceptable liquidity risk without desired changes.
169
What does a steeper FTP curve indicate?
A steeper FTP curve signals the need for business lines to raise long-term liabilities and penalizes short-term funding.
## Footnote
This is crucial for the bank's overall funding strategy.
170
What does a liability-sensitive balance sheet imply?
It implies that liabilities will reprice faster than assets, which could lead to increased interest rate risk if left open.
## Footnote
This situation may require proactive management to mitigate risk.
171
What is meant by a 'blended' FTP rate?
A blended FTP rate, or weighted-average cost of funds curve (WACF), reflects the combined cost of funds from different business lines.
## Footnote
It helps in decision-making regarding asset pricing across various sectors.
172
What are the main risks a bank faces when extending a loan?
The main risks include:
* Credit risk
* Liquidity risk
* Interest rate risk
## Footnote
These risks arise from mismatches in funding and loan terms.
173
Why do banks take on liquidity risk?
Banks take on liquidity risk to increase profitability by borrowing short and lending long, which generally reduces funding costs.
## Footnote
This strategy aligns with a normal upward-sloping yield curve.
174
Why is a flat or inverted yield curve detrimental to banks?
It reduces profitability as banks cannot increase their net interest margin by borrowing short and lending long.
## Footnote
An inverted curve can also signal a recession, increasing credit losses.
175
Do retail banks and corporate banks manage liquidity risk the same way?
Yes, they manage liquidity risk similarly by term matching funding and lending, but full-term matching reduces profitability.
## Footnote
All banks maintain high-quality liquid assets for liquidity crises.
176
177
Primary functions of ALCO
1. Risk management (financial risks including interest rate risk, liquidity risk, and foreign exchange risk)
2. Balance sheet management (optimal
3. Strategic planning
4. Regulatory compliance
5. Performance monitoring
178
What is Fund Transfer Pricing, and how does it work?
FTP is a financial management tool used to allocate the costs and benefits of funds between different business units.
The process of how it typically works:
1. Cost of Funds
(FTP establishes benchmark interest rate reflecting cost of funds)
2. Allocation
(FTP mechanism assigns transfer price when BU borrows or lends funds internally)
3. Performance Management
(FTP used to measure BUs' profitability based on NII from funds allocated to it, after accounting for cost of funds)
4. Incentives
(Incentivises BUs to manage their funding efficiently — sourcing cheaper funds or generating higher returns get rewarded in FTP system)
5. Risk Management
(Helps banks understand interest rate risk associated with funding strategies + aligns funding costs with risk profiles)
179
3 rationales behind FTP (P131)
1. Manage price setting process, reflecting gap profile
2. Ensure liquidity risk and interest rate risk are removed from the business lines and centralized in treasury
3. Ensure asset price-setting process reflects the true extent of liquidity risk and IRR generation (so that returns are more clearly reflective of genuine SVA)
180
Surplus Funded vs Funding Gap
More Liabilities than Assets
181
FTP should reflect
1. Actual rates paid by both sides
2. Competitive structure of retail markets
3. Properly priced products
4. Behavioural match funding, where applicable
5. Funding position of business unit
182
Self-funded bank definition + net charging regime
****
183
Dynamic Transfer Pricing Definition
*****
