Study On Foundation And Application Of FTP System By Commercial Banks

Fund Transporting Price (FTP) is one of key tools in Asset and Liability Management. Based on Interbank Offered Rate and appropriate term structure estimation, fund supply and demand are adjusted, for (the) purpose of enhancing fund management. FTP plays core tools in management accounting of commercial banks drawing from advanced oversea bank experience. The application of FTP is quite meaningful for commercial banks in China to improve the ability of Asset and Liability Management, keep away from risk, and increase their profitability of fund. With the development of interest marketing reform ,local commercial bank begin attaching importance to FTP. Compare with advanced oversea bank, there are much notable difference in theory and experiment, especially how to design their own FTP system.This article selects how to actualize FTP in local commercial bank. Above all, theory basis is built, researching the characteristic between margin FTP and full FTP. The result shows implementing FTP is in favor of raising the management. Secondly, taking case of a commercial bank, FTP's process and effect is investigation. As a result some suggest is put forward. Finically, a stepwise method is needed due to some circumstance in local.Unlikely other literature, combine theory with practice is the most work. As the first local bank using FTP, combining theory with practice is same important as using for reference from advanced oversea bank. FTP's application message shows it have a strong impact on bank management.