Zherdetska L. Transfer Pricing Mechanism in Banks

Theoretic and methodological basics of using transfer prices in the banks and building transfer pricing mechanism are deepened. Author suggests determinations of the terms "transfer price", "transfer pricing " and "transfer pricing mechanism" concerning banking activity. Theoretic scheme of the bank's transfer pricing mechanism is developed, its components and interactions between them are defined. Operational stages are allocated and formation processes of factors which favored to development of the transfer pricing mechanism of domestic banks during the period from 1992 to 2008. Estimation methods of factors which influence on formation of the transfer pricing mechanism (competition and level of management decentralization) are specified. The design procedure of the transfer prices on the basis of the base rate expanded methods is improved.