Revisiting Funds Transfer Pricing

23 Pages Posted: 3 May 2013

See all articles by Hovik Tumasyan

Hovik Tumasyan

FinRisk Solutions; Deloitte LLP - Deloitte Canada; SAS

Date Written: February 26, 2012

Abstract

Fundamentally, the objectives of funds transfer pricing (FTP) have remained the same as when it was first developed. However, in the environment of very low interest rates that preceded the recent financial crisis FTP frameworks in many banks have been left underfunded and underdeveloped.

The financial crisis brought FTP into the regulatory spotlight. Regulators expect banks to be able to demonstrate how their FTP frameworks are aligned to the best practice principles for liquidity management.

The paper reflects on the fundamental aspects of a FTP framework and its role in a bank.

Keywords: Funds transfer pricing, FTP

Suggested Citation

Tumasyan, Hovik, Revisiting Funds Transfer Pricing (February 26, 2012). Available at SSRN: https://ssrn.com/abstract=2257081 or http://dx.doi.org/10.2139/ssrn.2257081

Hovik Tumasyan (Contact Author)

FinRisk Solutions ( email )

Toronto
Toronto, ON
Canada

Deloitte LLP - Deloitte Canada

8 Adelaide St West #200
Toronto, Ontario M5H 0A9
Canada

SAS ( email )

100 SAS Campus Drive
Cary, NC 27513-2414
United States

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