| Along with Foreign banks started their local incorporation in 2007 as well as domestic financial market's further loosen, the bank industry rapidly expand, which is a big challenge to China's macroeconomic regulation and the financial market stability, also cause the uncertainty of monetary policy conduction. With the restriction uplift of business area, business product and business currency, the foreign banks will have a big growth in business scale and the innovation product, which will have a significant impact on China's existing finance organization system, the financial behavior and the structure of bank's assets and liabilities, the monetary policy conduction system became more and more complicated. Next, within the development of local currency money market as well as the attenuation of PBOC interest rate monitoring, will cause the possibility of domestic interest rate market to open comprehensively, but also brought the hard challenge to the product pricing and the performance revaluation. The existing local banks' organization structure as well as management system by branch level will be under above impacts.Fund transfer pricing is one of effective management accounting tool, which combined with interest rate risk management, product pricing, resource allocation and performance evaluation. Most of international commercial banks have formed their own FTP framework. For the restriction of the interest rate in China and the lag of China financial market's development, there is no effective FTP framework for local banks. The paper is based on the FTP practice of Standard Chartered Bank, combined with statistics module on Contrastive analysis, intends to sum up some key points and difficulty in FTP framework's implementation.This paper comes up many key points on implementation of FTP framework, and intends to provide the valuable suggesting and reference of FTP practice to local commercial banks. |
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