Economics · Bank Management

Consider the following statements regarding the objectives of a robust Transfer Pricing Mechanism (TPM) in a multi-branch banking environment: Statement I: The TPM should ensure that the branch's profitability is reflective of its operational efforts in deposit mobilization and credit dispensation rather than market volatility. Statement II: The TPM must be designed such that it eliminates the need for any branch to maintain the Cash Reserve Ratio (CRR) or Statutory Liquidity Ratio (SLR) at its own level. Statement III: A high Transfer Price for deposits always discourages branches from mobilizing low-cost CASA deposits. Which of the statements given above are correct?