Investopedia

Continue to Site »

Funds Transfer Pricing - FTP

Filed Under » , ,
Dictionary Says

Definition of 'Funds Transfer Pricing - FTP'

A method used to individually measure how much each source of funding is contributing to overall profitability. The funds transfer pricing (FTP) process is most often used in the banking industry as a means of outlining the areas of strength and weakness withing the funding of the institution. FTP can also be used to indicate the profitability of the different product lines and each staff member, as well as act as a great medium for comparison between employees, branches, etc.
Investopedia Says

Investopedia explains 'Funds Transfer Pricing - FTP'

To guage FTP, banks can first establish a FTP curve. A general curve is calculated by plotting the relationship between yield to maturity and time to maturity, then adjusted to reflect the lending needs of each location. A rate is then assigned to each of the transactions that occur at the bank. For example, a five-year bond would have a different rate than a 10-year bond. Finally, all of the rates are entered into the FTP system.

Articles Of Interest

  1.

    Tips For Controlling Investment Losses

    A profit/loss plan helps investors recognize mistakes and invest logically, rather than emotionally.

  2. The Impact Of U.S. Corporate Taxation On Investment Decisions And CFC Transfer Pricing

    To avoid taxation, businesses do careful tax planning, taking into consideration more than one country's taxation system.

  3. The Rise Of The Modern Investment Bank

    Get to know a little bit about the institutions whose actions help to guide free markets.

  4. Zooming In On Net Operating Income

    NOI is a long-run profitability measure that smart investors can count on.

  5. EBITDA: Challenging The Calculation

    This measure has a bad rap, but it's still a valuable tool when used appropriately.

  6. Forces Behind Interest Rates

    Get a deeper understanding of the importance of interest rates and what makes them change.

  7. What Was The Glass-Steagall Act?

    Established in 1933 and repealed in 1999, the Glass-Steagall Act had good intentions but mixed results.

  8. Financial Career Options For Professionals

    Find out if spreading your wings to try a new career will make you soar or fall flat.

  9. Investing In IPO ETFs

    Learn the history, rules and risks of investing in IPO exchange-traded funds.

  10. Finding Undiscovered Stocks

    Wall Street tends to focus on large cap stocks, leaving other stocks under-followed and undervalued.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  2. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  3. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  4. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  5. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  6. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.
Trading Center
Array ( )
taggroups(for debug only):
Array ( [0] => What's New [1] => Personal Finance [2] => SEG (Business Owners) [3] => SEG (Business Owners:Loan-Business) [6] => Stocks [7] => Fundamentals [8] => SEG (Investors) [9] => SEG (Investors:Instrument-Stocks) ) time:10ms