Funds Transfer Pricing (FTP) Complete Course | Bank Treasury & ALM

Master Funds Transfer Pricing (FTP) with this complete, practical course designed for banking, Treasury, ALM, liquidity risk, finance and balance sheet management professionals.

This 24-session Funds Transfer Pricing course takes you from the fundamentals of FTP through to building and operating a sophisticated FTP framework in practice.

Rather than treating FTP as a theoretical banking concept, this course focuses on the decisions Treasury teams actually have to make: how funding costs should be measured, how assets and liabilities should be priced, how liquidity and interest rate risks should be transferred, how behavioural assumptions should be incorporated, and how FTP can be used to influence the balance sheet.

Throughout the course, we follow a consistent worked banking example so that the concepts build progressively from one session to the next.

You'll learn how to:

• Understand what Funds Transfer Pricing is actually designed to achieve • Understand the regulatory expectations surrounding FTP • Break an FTP rate into its individual components • Build and select an appropriate base curve • Construct a Term Liquidity Premium (TLP) curve • Use primary issuance, secondary spreads, CDS, deposit pricing and peer funding as market evidence • Price contingent liquidity and liquid asset buffer costs • Incorporate cross currency basis, tenor basis and index basis • Price optionality, prepayments and early withdrawals • Understand levies, MREL and other funding costs • Compare the major FTP methodologies • Understand marginal versus average cost of funds • Apply behavioural rather than contractual maturity assumptions • Build replicating portfolios for non maturing deposits • Understand deposit beta, stability and core versus non core balances • Price mortgages, corporate lending, revolvers and other assets • Determine the appropriate FTP credit for different types of deposits • Price wholesale funding and off balance sheet exposures • Understand intragroup funding and trapped liquidity • Design FTP governance and operating models • Understand Treasury P&L and FTP attribution • Implement an FTP framework across data and systems • Identify common FTP design failures and behavioural weaknesses • Understand how FTP frameworks can be gamed • Use FTP strategically to influence balance sheet behaviour • Understand how changing markets affect FTP • Build FTP calculations from observable market inputs • Assess an FTP framework using a practical Treasurer's checklist

The course also connects FTP to the wider bank balance sheet, including ALM, liquidity risk, LCR, NSFR, IRRBB, ILAAP, RAROC, customer pricing, funding strategy and Treasury P&L.

Later sessions move beyond theory into practical worked examples, including:

• Building an internal funding curve • Pricing a 5 year fixed rate mortgage • Calculating FTP credit for a term deposit • Pricing instant access deposits using a replicating portfolio • Charging for undrawn committed facilities • Allocating liquidity buffer costs • Reconciling Treasury FTP P&L

By the end of the course, you should be able to look at an FTP framework and understand not just how it calculates a rate, but whether that rate makes economic sense, what behaviour it creates and where the remaining risk ultimately sits.

This course is particularly relevant for:

Treasury professionals ALM professionals Liquidity risk teams Banking and finance professionals FTP teams Balance sheet management teams Financial risk professionals Banking analysts Finance and FP&A teams Risk managers Banking consultants Students preparing for careers in Treasury or ALM

If you work with a bank's balance sheet, funding, liquidity, product pricing or profitability, this course is designed to give you a practical understanding of how Funds Transfer Pricing works from end to end.

▶️ Start with Session 1: What FTP Is Actually For, then work through the playlist in order.

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