Study On The Funds Transfer Pricing Of A Commercial Bank

In 2007, China financial market thoroughly has been open to foreign bank, but local commercial banks'competitive pressure is increasing seriously. Meanwhile, with the development of deposit reserve ratio and the strengthening of credit control measures, the local commercial bank is searching for a new way to improve the core competition. The foreign bank's FTP (Funds Transfer Pricing) have the features like adjustment of interest, cost, fund flow, Resource allocation, risk control, business-oriented etc., which will become a new creative management for local bank. Nowadays, local bank just start up the research of FTP and doesn't form a complete and practical solution for FTP. Based on a series of issues as the use of funds by high cost, profitability declined, loose internal financial management, weak evaluation mechanisms of interest rate and a series of interest rate in commercial bank A, the article details an assume of FTP and build up a set of complete FTP solution.The article includes 5 chapters. Chapter One briefly introduces the solution of background, meaning,effect and research of way and structure. Chapter two details the theory of FTP and main measures from foreign commercial bank's FTP. Chapter three analyzes the present status of commercial bank A and existed issues. Chapter four as key section fully describes the target, principle, requirement, mode, pricing system and methods of building the solution, also analyzes the department division, implementation requirement and process. Finally, the article predicts the effectiveness of implementation FTP in commercial bank A and coming direction in future.Through a research by this article, a structure and mode of FTP will be assumed to be built up for a reference to local commercial bank to use new mode and spread widely.