FTP 💧 How banks price liquidity internally. #Banking #Liquidity #finance
13 April 2026·1 min
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Welcome to this session from the Industry Portal liquidity management course, where we explore one of the most important but often misunderstood tools in banking: Funds Transfer Pricing (FTP).
While liquidity risk is managed centrally by Treasury, FTP ensures that liquidity is embedded across the entire organisation — directly influencing pricing, profitability, and decision making.
In this video, we break down what FTP is and how it works as an internal market for liquidity. You will learn how lending businesses are charged for the funding they consume, while deposit generating businesses are rewarded for providing stable funding, ensuring that all activities reflect the true economic cost of liquidity.
We explore different FTP approaches, including pooled FTP, dual FTP where interest rate risk and liquidity risk are separated, and behavioural FTP based on expected rather than contractual maturities. You will see how these frameworks support regulatory metrics such as LCR and NSFR and drive more sustainable balance sheet management.
The session also explains how FTP influences business behaviour by embedding liquidity discipline into everyday decisions, aligning Treasury strategy with commercial objectives, and improving risk adjusted performance measurement.
We cover practical challenges including transparency, data quality, governance, and the role of FTP committees in ensuring consistency and credibility across the bank.
Finally, we look ahead to how FTP is evolving, including links to behavioural modelling, contingent liquidity pricing, digital banking, and ESG considerations.
By the end of this session, you will understand how FTP transforms liquidity from a centralised function into an enterprise wide discipline that drives accountability, resilience, and value creation.
👉 Learn more at theindustryportal.com
Subscribe for the full liquidity management course.
#FTP #LiquidityManagement #Banking #Finance #Treasury #RiskManagement #LCR #NSFR #TheIndustryPortal
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