BOE reports UK lenders’ transfer pricing fall

26 Mar 2013

Bank lenders in the UK have seen their transfer price — the costs charged to their business units to fund the flow of new loans — fall sharply in the first three months of 2013, according to a report by the Bank of England.

The cost to a bank’s treasury unit to provide financing for new loans facilities internally is expected to fall further over the next three months, according to a survey carried out by the central bank.

The reduction in the transfer price is a result of falling spreads for ...

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