Since the financial crisis in 2007/ 2008 European banks have experienced a significant decline in their Cost of Funding (CoF). Analysis shows a decrease of more than 50% of overall CoF defined as “interest expenses over total liabilities” from 2.5% in 2008 to 1.2% in 2013. This trend, which is partly driven by a shift in the sourcing of funds towards deposits and short term debt, has been confirmed in interviews with industry experts. In the day-to-day business, however, banks/ treasurers apply more sophisticated approaches of marginal costing. This enables them to steer the business by synchronizing actual pricing with actual CoF.