Bank Transfer Pricing,
from FTP to RTP
A 3-day workshop that covers the foundations of Transfer Pricing in Banking. The workshop covers all aspects of the Transfer Pricing Models and Methodology in a way that will make it accessible to non-specialists in the subject but with the objective that the trainees will be able to become effective in the unit in charge of defining and/ or managing transfer pricing.
Detailed advanced knowledge may be gained in more focused trainings such as Asset and Liability Management or Credit Risk. Management. We refer indifferently to both terminologies through FTP or RTP.
Level: Foundation, but with
a strong progression in the understanding and modelling of transfer pricing.
Identify an essential domain in bank management.
Define the transfer price for all risk classes that are to be integrated in financial products and how they sold be organized for effective management.
Understand a global view of all the profitability variables and pricing constraints.
Gain a deep understanding of Transfer Pricing.
Enhance your role in the ALM and/ or MIS activities of the banks.
Rational pricing A computer-based simulation, during which participants
would be asked to price different products (deposits and loans) using at the
best of my knowledge (I’ll do the research) the Egyptian constraints (Egyptian
Yield Curve, Central Bank regulations…). The products covered would be typical
products of your market (retail and/or corporate). There are different ways I
could create this simulation; they may need to have access to a laptop and I
would supply Excel spread sheets so that they can implement the concepts. I
still need to think this over as it would represent a big investment for me..
Egyptian banks are principally using FTP in their profitability analytics. I could use the AgriBank case study that I presented (very, very quickly in the last session). It is a full day work for participants to do the full analysis. I would also see if I should give them some spreadsheets to help them in this complex case study.
The simulations of day 2 and day 3
will be totally practical and will allow the participants to experience a near
real life experience in the analysis of FTP and the related decisions
All staff that are involved in:
The use and/or calculations of transfer pricing,
Staff defining and using product pricing,
The profitability and performance analysis,
MIS and management accounting,
Banking managers.
