Funds Transfer Pricing (FTP)

Name: Funds Transfer Pricing (FTP)
Brand: Euromoney Learning
SKU: 1346247

Euromoney Learning

Course summary

Professional Training

3 days

3,565 GBP excl. VAT

Euromoney Learning

London, Online courses

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Course description

Funds Transfer Pricing (FTP)

Funds Transfer Pricing (FTP) is critical to banks 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 intensive Funds Transfer Pricing (FTP) workshop draws on practical case studies to better equip you with an understanding of how FTP mechanisms have and are evolving, what is currently considered by the banking industry to be best practice in terms of their design and operation, and strategies for overcoming challenges to them.

Outcome / Qualification etc.

Learning Outcomes:

Articulate the role of FTP within a bank and the regulatory requirements for it
Describe the evolution of FTP methodologies from Zero Term Premium to Matched Term Premium pricing
Determine suitable proxies for derivation of a FTP curve including those in under-developed wholesale markets
Identify suitable basis adjustments to internally manage interest rate risk introduced by the funding model
Combine FTP curves with behavioural models to better value non maturing assets/liabilities
Adjust to FTP models to reflect regulatory impact such as LCR and Leverage ratio
Evolve existing FTP models to include Capital as well as Liquidity Funding costs and regulatory impact
Advise on enhanced portfolio analytics and opine on how alignment of business incentives are critical to the FTP mechanism’s success

Training Course Content

Day 1

Session 1: Defining FTP and its benefits
Session 2: FTP Methodologies and deriving the FTP curve
Session 3: Operating FTP

Day 2

Session 1: Focus on Behaviouralisation
Session 2: Pricing with FTP
Session 3: Interaction of Basel Liquidity Regime and Funds Transfer Pricing

Day 3

Session 1: Making FTP effective
Session 2: Evolving to C-FTP – including cost of capital in FTP mechanism
Session 3: Future evolution of FTP Models

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About provider

Euromoney Learning

We develop bespoke learning experiences with the perfect blend of technologies and techniques to help you succeed. An organisation’s ability to continuously learn and evolve rapidly is the ultimate competitive advantage. To achieve your strategic goals, it is essential to...