25 years: Treasury & ALM
In this video, Moorad describes how banks measure and control their internal costs and allocation of funding, including the critical role played by a bank's treasury department.
In this video, Moorad describes how banks measure and control their internal costs and allocation of funding, including the critical role played by a bank's treasury department.
17 mins 9 secs
Funds Transfer Pricing is performed by the Treasury desk of a bank. It is used to estimate the overall profitability of a company and its individual business lines. There are many different ways to calculate this funding rate and should be applied to companies on an independent basis.
Key learning objectives:
Define Fund Transfer Pricing
Learn about who operates the FTP and how it is managed
Discuss the rate that should be used to calculate FTP
Understand how FTP should be presented and visualised