Funds Transfer Pricing
- Description:
Funds Transfer Pricing [FTP] is critical to bank’s internal management of liquidity and market risk. Whilst regulators do not specify what FTP mechanism a bank should operate, they do require it to be effective in ensuring that asset pricing includes an accurate reflection of funding costs. For a FTP mechanism to be successful, it requires the effective partnering of treasury, wider finance and the front-line business. This programme addresses how FTP mechanisms have and are evolving, what is currently considered to be best practice in terms of design and operation and strategies for overcoming challenges to them.