Oracle Transfer Pricing | Oracle Products

Oracle Transfer Pricing

Oracle Transfer Pricing is the banking industry standard for determining the account level spread earned on assets and liabilities, and the spread earned as a result of interest rate exposure. This enables accurate assessment of profitability along product, channel, and business lines, as well as the centralization of interest rate risk so it can be effectively managed across the bank.

Integrate and Streamline your Performance Planning and Analysis
As one of the analytical applications integrated within the Oracle Financial Services Applications (OFSA) family of products, Oracle Transfer Pricing works seamlessly with other products, such as Oracle Budgeting and Planning, Oracle Profitability Manager, Oracle Risk Manager, and Oracle Financial Data Manager.

Data Sheet: Oracle Transfer Pricing (PDF)

Benefits

	Isolate the major sources of your margin and separate the components of net interest income. Isolate rate risk into your funding center where it can be centrally managed. Hold business units accountable for what they can control: pricing and profitability. Measure and manage these components separately to locate tremendous profit opportunities.
	Flexibly assign transfer rates at the lowest level. Choose from nine possible methodologies to set the appropriate level of precision at the instrument level. Incorporate instrument characteristics, user-driven yield curves, and customized prepayment expectations to derive the final transfer rate.
	Reconcile current rate risk with historical transfer pricing perspective. Transfer prices must be calculated to reflect both current rate risk and historical balance sheet management actions to clearly explain today's treasury profit. By comparing historical to current transfer rates, current risk profit and historical risk profit can be isolated.
	Centralize interest rate risk. Isolate each source of interest rate risk and concentrate rate risk management in your bank's funding center. Create ongoing access—at any desired frequency—to vital information on interest rate risk margin that is an essential part of effective treasury management.
	Develop a deep understanding of option costs. Track the cost of embedded optionality as a spread over the base transfer rate. Quantify option costs using sophisticated stochastic techniques with four term structure models and two smoothing methods.

Oracle Transfer Pricing is one of Oracle's financial services products.