Riggs National Corp., Washington D.C., is installing a profitability measurement system from Sendero Corp. The PC-based program supports match-funded transfer pricing to give a picture of the institution's profitability. Match-funded transfer pricing allows interest rate risk to be allocated separately from units that earn or use the funds. The technique can be applied to business units, such as branches or departments, or to products.
The $5 billion-asset bank holding company is using it for its business units and will eventually extend it to it products.
Riggs is a multibank holding company with affiliates in Washington D.C., Virginia, Maryland, the United Kingdom, and France.
Headquarted in Scottsdale, Arizona, Sendero Corp. is a wholly-owned subsidiary of Milwaukee-based Fiserv Inc.