← Resource Mobilization Strategies and Frameworks

Funding strategy, ALM and deposit pricing

Module 03 / 5 · 70 min

Diagnose a bank's funding mix, concentration, loan-to-deposit ratio and cost of funds, then price deposits through funds transfer pricing and board-approved rates.

In this module you will learn to

Analyse a bank's funding mix, core and volatile deposits and depositor concentration from five years of data
Calculate the loan-to-deposit ratio and judge the risk of a targeted reserve requirement
Compute the average and marginal cost of funds
Use funds transfer pricing to measure a branch's deposit contribution
Price a deposit product against the policy rate, competitor rates and inflation, within NBE/INT/13/2026

Built on

Erudite Africa training module: Ethiopian Context, topic 1.b Resource Mobilization Strategies and Frameworks, Levels 1 and 2 (October 2026)
NBE Directive NBE/INT/13/2026 and the NBE Monetary Policy Committee release No. 7 (13 July 2026)
NBE directives SBB/72/2019, SBB/94/2025, SBB/95/2025, FXD/01/2024 and FXD/04/2026, and National Bank of Ethiopia Proclamation No. 1359/2025, as cited in the lessons
NBE Risk Management Guidelines (May 2010)
Erudite Africa Domestic Banking Operations course notes on deposit products and account maintenance (2026)
National Financial Inclusion Strategy II (2021 to 2025) and the NFIS-III refresh

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.