As an example, if we compare the cost and time taken for a credit transfer of FRF 5.000 from Frankfurt to Paris, the fee charged by the different German banks varies - according to a German newspaper from DEM 20.00 to DEM 60.00 and the processing time takes between two and 14 days.
In the trading business model, reporting fair value focuses risk management on short-term price movements and in most cases incentivizes management to define the organization's risk appetite and to mitigate risk through hedging or other means. Fair value also incentivizes the entity to raise and maintain capital at a level sufficient to cover the price volatility of its assets.