A two-day comprehensive course on Funds Transfer Pricing concept, practical FTP calculations and related implementation issues
Course Description
The purpose of this course is to give you a good understanding of Funds Transfer Pricing methods and approaches and of their practical use in the banking industry.
We start with a general introduction to Funds Transfer Pricing and risk-adjusted performance measurement. We explain FTP basics and present processes for allocation funds to the business units.
We give a thorough introduction to FTP functions and objectives that primarily include: profitability management, liquidity management, balanced sheet management, capital allocation and product pricing.
We present and explain concepts such net interest income margins, cost of funds and liquidity mismatches, and we also describe how FTP can be used for differential product pricing.
Further, we present, explain and demonstrate FTP methods and approaches. These methods include: single-pool, multiple-pool and matched-maturity approaches. Then, we look at a practical transfer price calculations.
Finally, we explain how the FTP System should be designed and implemented in compliance with other banking systems within risk management framework.
Methodology
Classroom style lectures featuring up-to-date and relevant case studies and example.
