Funds Transfer Pricing (FTP) Certification Training

This FTP course is a practical, advanced program designed to equip banking, treasury, finance, and risk professionals with a deep understanding of funds transfer pricing frameworks, methodologies, and strategic applications within financial institutions. FTP is a key management tool used to allocate funding costs and benefits, support profitability measurement, align product pricing with underlying balance sheet risk, and enhance liquidity and interest rate risk management. The course explores how FTP integrates with asset‑liability management (ALM), regulatory expectations, and performance steering across business units, helping participants to implement robust FTP policies and apply them to real‑world balance sheet decisions. With practical exercises, case examples, governance principles, and hands‑on techniques, this training builds competence in designing, governing, and applying FTP to enhance product profitability, internal performance measurement, and strategic funding decisions.

Introduction to FTP

• Purpose of FTP in modern banking
• Regulatory and strategic context (2025 expectations)



FTP Structure & Rate Components

• Base rate, term liquidity premium, credit risk premium
• Optionality and behavioral components
• FTP governance principles



Interest Transfer Pricing (ITP) & Liquidity Transfer Pricing (LTP)

• ITP: Interest rate risk allocation
• LTP: Pricing liquidity and funding stability
• Interaction between ITP and LTP in balance sheet management



Pricing of Contingent Liquidity

• Undrawn commitments
• Revolving credit facilities
• Behavioral adjustments and stress scenarios
• 2025 regulatory refinements



Balance Sheet Shaping Through FTP

• Steering business lines and product pricing
• Incentive alignment in lending, deposit gathering, and treasury
• FTP floors, caps, and bandwidth policy



Case Studies

• FTP calculation example
• LTP in a liquidity stress scenario
• How FTP changes product pricing decisions



Q&A

• Open discussion and clarification of course topics

• Basic understanding of banking or finance concepts
• Familiarity with balance sheets and interest rate concepts (helpful but not required)
• General awareness of risk management and treasury operations
• No prior experience in FTP or treasury pricing required

• Treasury analysts, finance officers, and risk management staff
• Banking professionals involved in pricing, product management, or funding
• Internal auditors and compliance professionals
• Financial controllers, FP&A personnel, and corporate treasurers
• Anyone seeking a practical understanding of FTP and its impact on business decision-making

• 20 multiple-choice questions covering course content
• Passing score: minimum 15 correct answers
• Two attempts allowed to achieve a passing score
• Certificate issued upon successful completion

Obtaining the Funds Transfer Pricing (FTP) Certification equips banking, finance, treasury, and risk professionals with a deep, practical understanding of how financial institutions allocate funding costs, manage liquidity and interest rate risk, and align product pricing with balance sheet realities. FTP is a key management tool used within banks to ensure that internal pricing reflects true funding costs and incentives, supports performance measurement and enhances decision‑making across business units. The course covers FTP frameworks, methodologies such as interest transfer pricing (ITP) and liquidity transfer pricing (LTP), behavioural adjustments, governance principles and how FTP integrates with broader asset‑liability management (ALM) and regulatory expectations - building practical competence that can be immediately applied in real world balance sheet and pricing decisions.

From a career and compensation perspective in the U.S. financial market, mastering funds transfer pricing can strengthen your professional profile and open doors to specialist risk and treasury roles. FTP expertise is especially valuable for positions such as FTP Analyst, ALM/Treasury Risk Specialist, Balance Sheet Manager or Transfer Pricing Consultant, where understanding funding costs, profitability analysis and internal performance steering is crucial. According to industry salary data for treasury, risk and ALM professionals in the United States, roles that require strong analytical and risk management skills often command competitive salaries, commonly ranging from approximately $90,000 to $140,000+ annually, with more senior or specialist positions exceeding these ranges, reflecting the premium on technical proficiency and strategic insight in financial institutions. Professionals with formal FTP training are better poised to contribute to pricing policy, profitability optimisation, regulatory reporting and liquidity strategy, enhancing both career mobility and compensation potential as financial markets and regulatory expectations evolve.

A financial engineer with over 20 years of practical experience in international financial institutions. Her expertise is strongly focused on Interest Rate Risk in the Banking Book (IRRBB), Asset Liability Management and Balance Sheet Management, with most of her career spent enhancing ALM profitability and efficiency. She holds a PhD in Finance and has published research that has received strong recognition from both academics and industry practitioners.

By the end of this course, participants will be able to:

• Explain the purpose and strategic role of Funds Transfer Pricing (FTP) within a bank’s balance sheet management and risk framework.
• Describe the regulatory expectations and governance principles that influence FTP design and implementation.
• Identify and differentiate key FTP components, including base rate, term and liquidity premia, credit risk spreads, and behavioural adjustments.
• Apply interest transfer pricing (ITP) and liquidity transfer pricing (LTP) concepts to accurately allocate funding costs and benefits to products and business units.
• Construct FTP curves and rate structures that reflect funding, liquidity and product‑specific characteristics.
• Incorporate behavioural assumptions and stress scenarios to adjust FTP for products such as undrawn commitments and non‑maturing deposits.
• Use FTP to support **balance sheet shaping**, pricing decisions, incentive alignment, and performance measurement across lending, deposit gathering, and treasury functions.
• Analyse practical case studies to calculate FTP results and interpret their implications for pricing, product profitability, and strategic decision‑making.