Allocating financing costs: centralised vs decentralised treasury

Centralisation can boost efficiency when coupled with an effective pricing and attribution framework

Many financial institutions consolidate financing activities within a central function. 

Yet centralisation on its own is not sufficient. To make it effective, it must be complemented by a framework that attributes financing costs from the central pool back to cost drivers. This design provides senior management with clearer visibility into performance on a fully cost-adjusted basis, enabling more