Funds Transfer Pricing [FTP] is both a regulatory requirement and an important tool for managing Balance sheet structure and measuring risk-adjusted profitability, taking into account the liquidity risk, maturity transformation and interest rate risk and as well as is critical to banks internal management of liquidity and market risk. Anecdotes from the trainer work with financial institutions around the globe over the last 30 years infuse the discussion to produce a compelling explanation of how FTP must be practiced in order to bring clarity to the analysis of risk and profitability through the entirety of the business cycle. A central premise of the workshop is that risk and profitability management cannot be treated as separate and distinct exercises; rather, they must be acknowledged to be one and the same, and FTP is the key to managing them consistently.
By the end of this course you will be able to:
- The objectives of FTP and various types of FTP
- Understand the key challenges posed in pricing and risk managing assets and liabilities
- Best practice for curve construction and modeling FTP
- FTP Methodologies and framework
- How liquidity transfer pricing can be managed and fits in the overall risk strategy
- Capital transfer pricing and how to make working adjustments
- How FTP affect a bank’s liquidity reporting
- Review recent developments, best practices and understand the Basel lll regulatory requirements and capital framework which affect the banking book and FTP
Is it right for me?
The course is Suitable for:
Relevant departments may include but are not limited to:
- Interest Rate Risk