Earnings Credit Rate (ECR)
The earnings credit rate is a bank rate used to offset treasury service fees with earnings credits on collected balances.
Internal funding, transfer-pricing, and credit-rate terms banks use to allocate liquidity cost and account value.
Funding transfer and credit rates are bank rates used to allocate funding cost, credit deposit balances, or measure how much liquidity contributes to product and business-line economics.
Use this branch when the rate is internal to the bank or tied to account-balance economics rather than simply advertised as a customer borrowing rate. These terms are common in treasury, commercial banking, cash management, and profitability analysis.
| Term | Practical use |
|---|---|
| Earnings Credit Rate (ECR) | Credits some business deposit balances against service charges. |
| Fund Transfer Pricing (FTP) | Allocates funding cost or benefit across bank products and business units. |
| Internal Funding Rate | Represents a bank’s internal cost or value of funds for pricing and performance measurement. |
| Low Interest Rate Environment | Describes conditions where low market and policy rates pressure spreads, deposit value, and lending economics. |
A customer may see an account rate, but the bank may evaluate the same account using FTP, liquidity value, operational balances, and service-fee offsets. Confusing these layers can distort pricing, profitability analysis, and relationship management.
These terms help explain bank economics; they are not a recommendation to choose one bank product over another.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
The earnings credit rate is a bank rate used to offset treasury service fees with earnings credits on collected balances.
Fund transfer pricing allocates funding costs, liquidity costs, and interest-rate risk across a bank's business units.
An internal funding rate is a bank treasury rate used to charge or credit business units for funds.
A low interest rate environment is a period when borrowing rates and yields remain low across money, credit, and investment markets.