Tony Williams,  Loan Technologist

The funding functions raises the capital necessary for the bank to honor its lending commitments. Funding is provided by two areas: treasury and distribution.

 

Treasury manages the funding needs and rate exposure by altering the type, maturity, and interest rate of the various direct obligations issued by the bank to fund loan requests.

 

Distribution provides the capital by selling pieces of deal/facilities or loans to investors. Through distribution, the bank raises capital without creating a direct or indirect obligation, since these sales are without recourse.