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Funds Transfer Pricing (FTP) is an essential part of every bank’s liquidity risk management framework – the PRA considers the FTP mechanism to be a vital part of the ILAAP liquidity risk review and approval process (see PRA SS24/15 and Section 6 of the ILAA section of the PRA Rulebook), and a detailed description of a bank’s FTP mechanism is a required section of the ILAAP submission. This recognises that FTP is an important part of the risk management process, assisting in understanding the profitability of customers, product lines and organisational units within a bank.
This one-day workshop provides comprehensive coverage of business best-practice approach to the bank internal funds pricing framework. It explains the process and implementation of the FTP mechanism in clear and practical terms, to enable delegates to acquire an understanding of best-practice FTP principles, and how they can be integrated into ALM policies, thus optimising the bank’s liquidity management framework.
A well-designed FTP framework enables a bank to pursue its strategic objectives, conversely a poorly implemented FTP framework can lead to long-term damage to a bank’s balance sheet structure and liquidity position.
The workshop is aimed at senior or experienced Treasury, Risk, Finance and Business Line practitioners, and covers the complete spectrum from governance and internal funding policy to risk measurement and returns analysis. Delegates take part in Group Exercises that aim to demonstrate the FTP mechanism in a practical, observable context.
The concept of bank funds transfer pricing
Objectives of internal funding policy
The cost of funds
FTP and liquidity management
Treasury op model, FTP and balance sheet management
FTP and liability strategy
Funding policies
Professor Moorad Choudhry is an Independent Non-Executive Director on the Board of Recognise Bank. He has over 35 years experience in banking in the C...
Professor Moorad Choudhry is an Independent Non-Executive Director on the Board of Recognise Bank. He has over 35 years experience in banking in the City of London and was latterly Treasurer, Corporate Banking Division at The Royal Bank of Scotland. He has served as Chair of the ALCO at four different banking institutions, and is author of The Principles of Banking (John Wiley & Sons Ltd 2012, 2023).
Treasury Senior Management
CFO and team
CRO and team
Heads of ALM/ Money Markets
ALCO membership
Business line heads
Heads of Balance Sheet Management
Risk Management
Liquidity Management
Heads of Funds Transfer Pricing
Finance Senior Management
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