|
BOOKSHOP
|
Transfer Pricing for Financial Institutions
|
| by John Smullen
|
Our price: £584.25 (Convert currency)
Normal price:£615.00, you save: £30.75 (5%)
£4.50 UK postage (for single orders)
|
Special order title, usually ships within 14 working days |
|
Or phone us on +44 (0)1730 233 870
|
Product code: 18427 ISBN: 1855733722,
ISBN13: 9781855733725,
160 pages, paperback, published by Woodhead Publishing, 2001
|
|
|
|
|
|
| Description of Transfer Pricing for Financial Institutions |
The definitive study of this essential part of financial institution management
- An authoritative and detailed survey of transfer pricing in the financial sector
- A clear exploration by an expert in the field
- A full description of the issues involved and the techniques required
- A guide to setting prices in financial institutions and integrating transfer prices within the organisational structure
- A review of specific transfer prices and risk adjustment performance measures
- A study of the strategic perspective
Establishing and maintaining effective transfer pricing policies is a key challenge in today's increasingly competitive international financial services sector. There are numerous issues involved, from the requirements of shareholders and risk management to the allocation of capital. There are also many different techniques for establishing efficient transfer pricing systems within an organisation.
This illuminating handbook provides a thorough introduction to transfer pricing and its uses within financial organisations, as well as a clear analysis of all the issues involved. Transfer pricing is so complex and variable that there can be no definitive blueprint for success: however, in this book John Smullen has provided a vital contribution to the debate and a much-needed clarification of this important topic.
Some of the areas covered:
- what transfer pricing is and why it is used
- why transfer prices are so appropriate for financial institutions why each organisation needs to approach the introduction of transfer prices differently
- how transfer pricing works in commercial organisations
- the different types of transfer price
- specific analysis of the transfer pricing of funds, capital and derivatives
- how to evaluate risk adjusted performance measures
- the complexities of estimating marginal costs and revenues
- a framework for understanding the motivation of shareholders, managers and regulators
- how transfer pricing works as part of management information strategy
This lucid and authoritative handbook will help you to:
- understand the different techniques used in transfer pricing
- establish transfer prices in line with your organisation's strategy and objectives
- make sound decisions, minimise risk and achieve better outcomes
This is a book for people involved in raising and loaning funds in today's global markets who wants to understand the issues involved in transfer pricing and the techniques required. It will be used by banking, investment, insurance and other financial organisations worldwide. |
| Contents of Transfer Pricing for Financial Institutions |
PART 1: An introduction to transfer pricing in financial institutions
1: What is transfer pricing?
Introduction
The definition of transfer pricing
Motives for transfer pricing
The focus of the book
2: The general theory of transfer pricing
Introduction
The economist's perception of optimal transfer prices
Comments on the simple optimal pricing model
Transfer pricing: the accountant's perspective
Conclusions
3: Transfer pricing in commercial organisations
Introduction
Single country transfer pricing systems
Multinational transfer pricing practices
Comments on transfer pricing experience
4: The uses of transfer pricing in financial organisations
Introduction
The nature of transfer prices
Uses of transfer pricing
Different types of transfer price
Conclusions
PART 2: Setting transfer prices in financial institutions
5: Integrating transfer prices with organisational structure
Introduction
Financial information: the strategic perspective
The interrelationships of units
Conclusions
6: Attitudes to risk
Introduction
The traditional view of risk
Market-based attitudes to risk
Conclusions
PART 3: Specific transfer prices
7: Transfer prices based on operating expenses
Introduction
The principle of activity-based costing
The distinction between transfer pricing and cost allocation
Problems in using activity-based costing information as part of a transfer pricing system
The uses of cost-based information for transfer pricing
Conclusions on the use of costing information
Comparing financial and non-financial organisations
8: Transfer pricing the costs of funds: a general perspective
Introduction
Borrowing and lending, investing and funding
Transfer pricing and time
Comments on transfer pricing
Conclusions
9: The transfer price of funds: some perspectives on wholesale and retail funding
Introduction
To what extent are wholesale and retail funding equivalent?
Price making
Effective duration of funds
Differences between wholesale and retail customers
Discontinuities in wholesale funding
Conclusions
10: The transfer pricing of capital
Introduction
Capital as funding
Regulatory capital
Conclusions
11: Risk adjusted performance measures: the transfer price of investment portfolios
Introduction
General issues in relation to RAPMs
The measures
Problems with the measures
Conclusions
12: Risk adjusted performance measures: return on risk adjusted capital and associated measures
Introduction
RORAC
Evaluation of RORAC style measures
Is the RORAC approach totally misplaced?
Conclusions
13: Risk adjusted performance measures: a critical overview
Introduction
RAPMs as statistics
RAPMs and incrementality
Conclusions
14: The transfer pricing of derivatives
Introduction
The pricing of financial options
Business options
Conclusions
PART 4: The strategic perspective
15: Optimal bank modelling for transfer pricing
Introduction
Overview of programming model
The programming problem applied to a bank situation
Interpreting the solution
The relationship of the model and transfer prices
The impact of constraints
The risk relationship of these types of model
Conclusions
16: Transfer pricing and management information strategy
Introduction
The financial and non-financial perspectives
Distribution channels
Customers
Conclusions
PART 5: A review of key issues and conclusions
17: Issues and conclusions
Introduction
No single transfer price
Transfer pricing systems are inappropriate for financial institutions
Market-based prices and market power
Matching
Are transfer pricing systems excessively risk averse?
Relating transfer pricing to strategy
Conclusions |
| About John Smullen |
John Smullen BSc, MA, MSc, MBA was educated at the London School of Economics, Birkbeck College and the London Business School. From 1973 to 1986 he held a number of academic post teaching economics.
In 1986 he joined Abbey National plc to establish a linear programming system to analyse the efficiency of their branches and subsequently developed delivery systems for financial management information. When he left to set up his own consultancy, he was senior finance manager responsible for product, customer and organisational unit performance.
In 1994 he set up John Smullen Consultancy and Training, which provides financial management information and training consultancy services to the financial services industry. He is also a visiting professor at the Catholic University in Uruguay and visiting lecturer in finance at De Montfort University and the Economics University of Cracow. John is also Senior Academic Associate at the University of Greenwich. |
See other products on
Other books by John Smullen
|