Funds Transfer Pricing and Term Liquidity Premium
Moorad describes how banks measure and control their internal cost and allocation of funding, including the critical role played by a bank's treasury department.
Overview
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:
What FTP is, who operates it and how it is managed
The rate that should be used to calculate FTP
How FTP should be presented and visualised
Summary
Expert
Moorad Choudhry
Former senior banker with almost 30 years experience. Moorad has held senior roles in commerical, investment and retail banking. He has also spent the last five years as a visiting professor.
