Bank funds transfer pricing: keeping it simple but effective - February 2018

Click FTP blog_Feb2018.pdf link to view the file.
Internal funds transfer pricing in banks is one of the more arcane (not to mention turgid) topics in finance. But FTP is an important part of the liquidity risk management framework, hence the importance attached to it by regulatory authorities. As such, the subject occupies a good chunk of the chapter on liquidity management in my forthcoming book Anthology: Past, Present and Future Principles of Banking and Finance. Ahead of the publication of Anthology next month, here is a brief intro to the topic around the theme of keeping things simple, but effective.