medium · Frm Part 2 Liquidity & Treasury Risk
In a well-designed FTP framework, what is the 'Franchise Value' of a deposit taking unit?
- The total fees collected from deposit account services.
- The market value of the bank's brand name.
- The spread between the FTP credit (market benchmark + liquidity) and the interest rate paid to customers.
- The total volume of deposits multiplied by the average interest rate.
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