202. Institutions should consider, and reflect in loan pricing, all relevant costs until the next …

Institutions should consider, and reflect in loan pricing, all relevant costs until the next repricing date or maturity, including:

a. the cost of capital (considering both regulatory and economic capital), which should result from the capital allocation in place, according to the established breakdowns, e.g. geography, business line and product;
b. the cost of funding, which should match the key features of the loan, e.g. the expected duration of the loan, taking into account not only contractual terms but also behavioural assumptions, e.g. pre-payment risk;
c. operating and administrative costs, which should result from cost allocation;
d. credit risk costs calculated for different homogeneous risk groups, taking into account historical experience of recognising credit risk losses and when relevant using expected loss models;
e. any other real costs associated with the loan in question, including tax considerations, when relevant;
f. competition and prevailing market conditions, in particular lending segments and for particular loan products.

1. Forbhreathnú

Teideal	Rialáil

Ceanglais
Foinse	Ceanglas

Caighdeáin
Foinse	Ceanglas