In current environment bank profitability is under heavy pressure, especially in Europe. Negative interest rates, flat interest curve, heavy investment needed for digitalization, competition from Fintech… this is leading bank profitability to historically low levels, and valuations are also suffering since several years. In this context, ensuring adequate pricing of products is a key challenge.
Developing an adequate Risk Based Pricing practice can be a key advantage. It is a challenge given it lies at the intersection of several skills, namely commercial, financial and risk expertise’s. Pricing a credit goes far beyond comparing a credit spread to the capital consumed, and this course is designed to dig deeper into this hot topic.
- Understand the link between RBP and bank valuations
- Be able to cummincate to stakeholders on importance of RBP
- Understand regulatory constrains and concerns
- Understand key building blocks of RBP: transfer pricing, cost of risk, operational costs, interest on capital and cost of capital structure, prepayment risk, cross selling
Who should attend?
• Credit portfolio management
• Strategic risk
• Capital Management
• Corporate Banking
• Product Pricing
• Bank Consultants
• Banking regulators