CREDIT RISK AND LOAN PRICING “ When you package your home loan and bank account, you could enjoy multiple benefits including interest rate discounts and savings on a range of great products .” (i)...

CREDIT RISK AND LOAN PRICING

“When you package your home loan and bank account, you could enjoy multiple benefits including interest rate discounts and savings on a range of great products.”

(i)   Does the statement above suggest banks should adopt user pays pricing or bundled product pricing and why?

(ii)  Which group of customers will be most suited to the pricing method that you have identified in part (i) and why?