RAROC Loan Pricing Calculator

Risk-Adjusted Return on Capital (RAROC) loan pricing per Basel II BCBS 128 (2006) / Basel III BCBS 189 (2010) simplified public approximation of the IRB economic-capital formula (single-factor Vasicek model at 99.9% confidence, or the SA risk-weight bucket table). Returns RAROC versus hurdle rate, economic capital, net income waterfall, and the break-even spread. Provable node counterpart to tools/437-raroc-loan-pricing.html; simplified public approximation, not a substitute for an internally approved IRB model.

Tool URL: https://ainumbers.co/chaingraph/art-362-compute-raroc-loan-price.html

post/v1/tools/compute_raroc_loan_price

Request

Base URL: https://ainumbers.co
URL: https://ainumbers.co/v1/tools/compute_raroc_loan_price
Auth: none declared

Request body

arrangement_fee_bpsnumber

Amount in basis points

benchmark_rate_pctnumber

Percentage value

capital_approachunknown required

capital_buffer_bpsnumber

Amount in basis points

commitment_fee_bpsnumber

Amount in basis points

cost_of_funds_pctnumber

Percentage value

ead_musdnumber

hurdle_rate_pctnumber

Percentage value

lgd_pctnumber

Percentage value

margin_bpsnumber

Amount in basis points

operating_cost_kusdnumber

pd_pctnumber

Percentage value

tax_rate_pctnumber

Percentage value

tenor_yearsnumber

utilization_pctnumber

Percentage value

Response

Successful tool execution result

break_even_gap_bpsinteger

break_even_spread_bpsinteger

capital_approachstring

drawn_musdnumber

economic_capital_musdnumber

expected_loss_musdnumber

funding_cost_musdnumber

gross_revenue_musdnumber

hurdle_rate_pctinteger

net_income_after_tax_musdnumber

net_income_before_tax_musdnumber

notestring

operating_cost_musdnumber

raroc_pctinteger

regulatory_basisstring

undrawn_musdnumber

value_creatingboolean

value_spread_pctinteger

Changes

No recorded changes to this operation across all 1 revision of this API.