Stage 5. Profit Allocation and Fund Transfer Pricing for Deposits and Loans
In Stage 4, we introduced the EP measure to evaluate the performance of individual business units.
As the new CFO, you want to know which business units create value for shareholders, and which ones require intensive care.
Your first priority is to evaluate the performance of branches that collect deposits from the public and make loans. You ask the head of Accounting and Control to compute the profitability of deposits and loans.
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