Le Taux Modèle: ING Direct, A Growing Success Story

Published 31 May 2005
Reference 5282
Industry Banking
Region Global
Summary

The case discusses the financial strategy of ING Direct, a telephone/internet retail bank that has been growing rapidly in eight countries. It presents both the deposit pricing strategy, and the asset allocation of the bank.

Teaching objectives

The case study triggers a discussion about interest rate risk, economic capital allocation and RAROC in banking.

Keywords
  • Banking
  • Internet banking
  • Interest rate risk
  • Bank regulation
  • Economic capital
  • RAROC