Résumé
Despite their important impact on loan volume, deposit balances, revenues and profits, banks rarely implement pricing strategies that integrate cost, risk and market factors. Instead, pricing is often handled by a separate pricing team or even by the individual business lines that do not have the capacity to consider the big picture when setting rates for specific types of loans or deposits. This article outlines steps to manage pricing across business lines and to formally connect pricing with the overall A/LM effort. These are: 1. Develop a clear understanding of pricing trade-offs. 2. Define specific goals for pricing. 3. Establish formal pricing guidelines. 4. Develop a holistic pricing process. 5. Define pricing governance rules and organizational accountability. Pricing that meshes with A/LM goals and is aligned with the bank's strategy requires not only more executive attention but also more professional pricing processes, as well as a dear pricing organization with governance rules.