Front cover image for Funds Transfer Pricing, Liquidity Premium and Market Structure

Funds Transfer Pricing, Liquidity Premium and Market Structure

Ted Lindblom (Author), Viktor Elliot (Other)
Funds transfer pricing (FTP) is widely acknowledged as an important part of banks' asset and liability management (ALM). This paper makes two contributions to the existing FTP-theory. First, we analyze the implications of adding a liquidity premium to the FTP. Second, since a majority of the existing banking markets are dominated by a limited number of large banks we also cover the case of kinked demand and supply curves on oligopolistic and oligopsonistic competition, respectively
eBook, English, 2017
SSRN, [S.l.], 2017