T203 · RAROC Loan Pricing Model

Model risk-adjusted return on capital for loan pricing. Inputs: loan amount, margin, fees, cost of funds, expected loss (from T198), capital allocation (from T201), and operating cost. Outputs RAROC, economic profit/loss, minimum margin for target RAROC, and Policy Mandate JSON loan pricing record. Client-side. Works offline. Zero PII.

Tool URL: https://ainumbers.co/tools/203-raroc-loan-pricing-model.html AP2/Policy Mandate export: yes

post/v1/tools/raroc_loan_pricing_model

Request

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

Request body

loan_amountnumber required
maturity_yearsnumber required
all_in_margin_bpsnumber required

All-in margin over reference rate (bps)

cost_of_funds_bpsnumber required

Bank internal funding cost over reference rate (bps)

upfront_fee_pctnumber required

Upfront fee as % of facility

annual_fee_pctnumber required

Annual agency/commitment fee as % of facility

expected_loss_annualnumber required

Annual expected loss ($) — from T198

rwanumber required

Risk-Weighted Assets ($) — from T201

cet1_ratio_pctnumber required

CET1 capital ratio held against this RWA (%)

opex_ratio_pctnumber required

Operating cost as % of loan p.a.

hurdle_rate_pctnumber required

Target RAROC hurdle rate (%)

cost_of_equity_pctnumber required

CAPM cost of equity for Economic Profit (%)

Response

Successful tool execution result

niinumber

Annual Net Interest Income ($)

fee_income_annualisednumber
raninumber

Risk-Adjusted Net Income ($)

economic_capitalnumber
raroc_pctnumber
hurdle_rate_pctnumber
raroc_vs_hurdle_pctnumber
economic_profitnumber
minimum_margin_bpsnumber
deal_verdict'approved' | 'rejected'
ap2_mandateobject

Changes

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