Funds Transfer Pricing

We were looking for a tool to help us quantify our loan pricing decisions, especially on the larger deals. We knew the profitability of our biggest credits would ultimately be determined at the net interest margin level, but we needed a system that would assist our lenders in this process.

With the Austin Associates’ LoanPricingPRO we found our solution. By utilizing state of the art coterminous maturity matched transfer pricing methodologies, the system quickly determines the net interest margin of any deal.

Our users simply select the appropriate funding curve and the model handles the rest. The system contains multiple rate tables including FHLB, Libor/Swap, and US Treasury, as well as our internal cost of funding curve. The best part is that because LoanPricingPRO® delivers the model to us via the internet, they are able to maintain all of these rate tables and we don’t have to involve our IT department in any support issues.

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