Financial Courses

Fund Transfer Pricing (FTP), long seen as a back-office compliance requirement, is undergoing a quiet transformation. With digital disruption, increasing interest rate volatility, and mounting pressure on margins, FTP is now emerging as a strategic powerhouse capable of driving profitability, influencing behavior, and optimizing resource allocation. As we move into 2025, forward-thinking banks are reimagining fund transfer pricing as more than just a regulatory checkbox. They're harnessing it to unlock internal transparency, allocate capital smarter, and incentivize the right risk-taking behaviors. In this post, we reveal seven FTP tactics that will turn your institution’s compliance framework into a competitive edge one that shapes better decisions, sharper pricing, and stronger financial performance. 1. Dynamic Liquidity Premiums: Pricing Risk in Real Time Traditional FTP models often apply static liquidity charges based on historical assumptions. But in today’s fast-evolving ma...

  In today's rapidly shifting financial landscape, effective banking ALM (Asset-Liability Management) is more critical than ever. As financial institutions strive to balance profitability, liquidity, and regulatory compliance, they face a range of risks that can severely impact their stability and growth. Among these, interest rate risk , liquidity risk , and credit risk are at the forefront, often working in tandem to stress a bank’s balance sheet. This post explores five major risks in banking ALM , breaking down how they affect institutions and what strategies can mitigate their impact. Whether you're a finance professional, a risk manager, or someone exploring training solutions , understanding these risks is essential to building a resilient financial system. 1. Interest Rate Risk: The Silent Balance Sheet Killer Interest rate risk arises from fluctuations in interest rates that affect a bank’s net interest income (NII) and the market value of its assets and liabiliti...