Funds Transfer Pricing

SIDC CPE-approved: 10 CPE Points

Date: 10^th & 11^th September 2025
Venue: DoubleTree by Hilton Kuala Lumpur

Classroom Training

COURSE INTRODUCTION

The Global Financial Crisis, 2007-9 provided a clear reminder of the importance of Funds Transfer Pricing (FTP), an essential tool for managing funding, liquidity, and interest rate risk that banks had largely previously ignored. FTP is not only critical to risk management, but also to ensuring that assets are accurately priced inclusive of their corresponding funding costs, and that business performance is properly measured and managed on a risk-adjusted basis to ensure the incentives of business managers align with the overall goals of the organization.

This 2-day course provides clear and practical instruction in FTP techniques, methods, and applications aligned with current best-practice. Throughout the course, illustrations, examples, and case studies are used widely to aid understanding and contextualize learnings within a real-world context. The course also entails a high level of interaction, with delegates encouraged to ask questions throughout to gain vital knowledge and deep insights.

Key Highlights:
- Understand what FTP is and how to build FTP curves
- Learn how to use FTP to price assets and remain competitive
- Be able to apply FTP for performance management, balance sheet management, and capital allocation

Fee

Fee per participant: RM5,900/$1,450

Please note that the Ringgit price is applicable to Malaysia-domiciled participants only. Discounts are available for group bookings. Please contact us for more details.

In-house/group training

If you are looking for an in-house training program or wish to send a group to an existing public program, kindly please contact Andrew Tebbutt at [email protected] or +603 2162 7802.
Learn More

For enquiries please contact:

Normariya Sariman
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 44

Ramesh Kalimuthu
Events Sales Director
[email protected]
Direct Line: +603 2162 7800 ext 65
Fax: +603 2162 7810

For sponsorship & speaking opportunities:

Andrew Tebbutt
Managing Director
[email protected]
Direct Line: +603 2162 7802

For marketing and media enquiries

Govina Selvanthran
Marketing Manager
[email protected]
Direct Line: +603 2162 7800 ext 22

Funds Transfer Pricing

SIDC CPE-approved: 10 CPE Points

Date: 10^th & 11^th September 2025
Venue: DoubleTree by Hilton Kuala Lumpur

Classroom Training

COURSE INTRODUCTION

Key Highlights:
- Understand what FTP is and how to build FTP curves
- Learn how to use FTP to price assets and remain competitive
- Be able to apply FTP for performance management, balance sheet management, and capital allocation

Fee

Fee per participant: RM5,900/$1,450

Please note that the Ringgit price is applicable to Malaysia-domiciled participants only. Discounts are available for group bookings. Please contact us for more details.

In-house/group training

If you are looking for an in-house training program or wish to send a group to an existing public program, kindly please contact Andrew Tebbutt at [email protected] or +603 2162 7802.
Learn More

Day One

Overview of Funds Transfer Pricing
- What is FTP?
- What is FTP used for?
- What are the benefits of FTP?
- Why centralize risk and how does FTP remove interest rate risk from business units?
- How did the Global Financial Crisis, 2007-9 show the value of FTP?
- What is the link between FTP and Asset Liability Management?
- Can FTP help define the bank’s Risk Appetite Statement?
- Should equity capital be included in FTP?
- What is Liquidity Transfer Pricing (LTP), and how does it relate tFTP?
- How dbank regulators view FTP?
- What are the components of a transfer price?

Case study: Northern Rock

FTP Curve Construction
- Pooled Funds Transfer Pricing
  - Single pool method
  - Multiple pool method
- Matched-Maturity
  - Assignment of explicit transfer rates
  - Specific funds characteristic and attributes
  - Advantages for capturing individual transactions
- Comparison of FTP Approaches
  - Strengths and weaknesses in FTP methods
  - Why maturity-matching is considered best practice
- Other curve construction methods
  - Deriving the marginal cost of funds curve
  - Applications of cross-currency swaps for foreign currency curves
  - Deriving the match-maturity curve in developing markets

Case Study: Detailed FTP example

Day Two

Pricing with FTP
- Risk-based product pricing
- Should flow FTP rates or stock/flow blended rates be used?
- Pricing assets and liabilities
  - Fixed rate vs floating rate
  - Short-dated vs long-dated
  - Secured vs unsecured
- Pricing equity investments
- FTP and deposit pricing
- Applying FTP to off balance sheet items and liquidity buffers

Balance Sheet Management and Capital Allocation with FTP
- FTP as a tool for shaping the balance sheet
- Centralized interest rate risk management
- Managing structural interest rate mismatches
- FTP as an internal allocation system
- Liquidity management and term liquidity premiums
- How does the Basel liquidity regime interact with FTP?

Case study: Managing non-maturing liabilities in the matched-maturity framework

Performance Management with FTP
- Net Interest Income decomposition: profit versus risk
- Risk-adjusted return on capital generated by different business units
- Improving the quality of decision-making
- Achieving higher profitability
- What does the BCBS’s fundamental review of the trading book mean for FTP?

Case study: Calculating profitability and return on equity

Opportunities and Challenges in FTP
- Dealing with embedded options
- Dealing with non-maturity deposits
- Adjusting for basis risk
- Accounting for non-performing assets
- Behavioral methodologies

EXPERT COURSE DIRECTOR

Dr Ken Baldwin
Former MENA Regional Head of Quantitative Analysis, Citigroup

Dr. Ken Baldwin has worked as a practitioner in banking and finance for over 25 years in senior positions spanning the front and middle offices. Having graduated from Oxford University with a first-class honors degree in Physics in 1989, he qualified as a Chartered Accountant with PWC, before joining UBS, and then later Credit Suisse, in derivatives risk and control functions based in London.

He gained a PhD in microeconomics, and worked in the GCC for 15 years in retail and investment banks. Whilst at Abu Dhabi Islamic Bank, Dr. Ken built an ALM analytic technology platform capable of capturing liquidity and interest rate risks inherent in the many varied financing products used at retail and corporate levels. He then moved to take up the position of MENA Regional Head of Quantitative Analysis for Citigroup. At Citicorp, Dr. Ken worked on structuring complex derivatives products used by Gulf-regional corporations to hedge FX and interest rate risks. Still residing in Bahrain, Dr. Ken then joined Investcorp, where he worked on the risk due diligence of corporate private equity and real estate private equity transactions and portfolio management. After leaving Investcorp, he set up the risk management department for venture capital bank, providing Basel III compliance and deal analysis for the bank. He then operationalized a new Islamic investment bank as its Chief Operating Officer for 3 years, before his most recent industry role at the Islamic Development Bank, where he set up and ran a new department tasked with developing financial policies and risk-based pricing of the bank’s Islamic financing products. Dr. Ken is currently an Assistant Professor of Finance in the UK. He has published quantitative finance articles in peer-reviewed academic journals including the Journal of International Financial Markets Institutions and Money, and the Journal of Risk, and during his earlier career, taught CFA and FRM professional certifications as a pastime for the Bahrain Institute of Banking and Finance.

WHO WILL BENEFIT?

Chief executive officers
Chief risk officers
Chief financial officers
Financial risk managers and risk analysts
Treasury analysts and market risk managers
Credit risk managers and analysts
Credit managers
Credit administrators
Corporate bankers
Retail bankers
Internal auditors
Compliance officers
Supervisors, regulators and risk standard setters

REGISTRATION

*Please note there is a fee for attending this program. Please contact us for more details.

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Booking, Payment and Cancellation Policy – important, please read carefully

By completing, signing and revised, sent separately us this registration form you are conﬁrming participants on the program. You are also conﬁrming your understanding of our Booking, Payment and Cancellation Policy.

Cancellation Policy: If participants cannot attend the program, replacement participants are always welcome. Otherwise, participants must notify us any of cancellations or requests to transfer to a diﬀerent program at least 14 days before the program date to be eligible for a refund, less a 5% administration on fee. Participants who cancel within 14 days of the program start date are liable to pay the full program fee and no refunds will be given. Instead fees will be converted to a REDmoney Seminars voucher equivalent to the original fee, less a 10% administration charge. This voucher is transferable within your organization and must be redeemed within one year of issue or become void. If a program is postponed for whatever reason registrations and fees will be automatically transferred to the new program date. Participants who wish to transfer to a diﬀerent program will be subject to the same terms as above and charged any diﬀerence in fees. No refunds or program vouchers will be issued for a no-show.
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For enquiries please contact:

Normariya Sariman
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 44

Ramesh Kalimuthu
Events Sales Director
[email protected]
Direct Line: +603 2162 7800 ext 65
Fax: +603 2162 7810

For sponsorship & speaking opportunities:

Andrew Tebbutt
Managing Director
[email protected]
Direct Line: +603 2162 7802

For marketing and media enquiries

Govina Selvanthran
Marketing Manager
[email protected]
Direct Line: +603 2162 7800 ext 22