Funds Transfer Pricing, Cross-Currency Funding, and Asset-Liability Management
Free GARP FRM Part II lesson in Liquidity and Treasury Risk Measurement and Management. 25 min read, ~3,805 words.
Funds transfer pricing (FTP) charges business lines the cost of the funding they consume and credits them for the funding they provide. Done right, it isolates duration and liquidity risk in Treasury where it can be managed. FTP methods: zero cost (worst, distorts pricing), average cost (better but blends old...
Read the full lesson, free →
Worked examples, audio narration, and practice. No signup to read.
What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- 16
- 17
Browse all free FRM Part II lessons or jump into free FRM Part II practice questions.