The Research On Fundstransfer Pricing Management Of Commercial Bank

FUND TRANSFER PRICING (FTP) management is the core of commercial bank asset and liability management. It is the important lever to regulate internal fund flows, and a key method to improve the management level of commercial bank. It also plays basic roles in optimization of resource distribution, direction of product pricing, fairness of performance appraisal, reasonable of risk control, and etc. With the opening-up of domestic financial market and the progress on promotion of market-oriented interest rates, local commercial banks are facing severe challenges which come from the horizontal competitions and the inner management requirements as well. It is an irresistible trend to apply internal Fund Transfer Pricing (FTP) management as a learning experience from advanced foreign banks. However, our current researches and practices on this are still at their primary stage. A full set of logical theoretical frame and operational management system haven't been established yet.FTP management is the research content of this paper. Considering the current development and management situation of domestic commercial banks, the author conducts researches on the concept, pattern, organization form, and methods of the management of Fund Transfer Pricing by applying theories on commercial bank operation management, financial management, and financial product pricing. It comes to the conclusion that effective FTP management is the key to promote the level of the operation management of domestic commercial banks. By analyzing the case of a domestic commercial bank, the study also provides solutions to establish FTP system and the points needing attention with corresponding suggestions as well.The paper aims to provide a reference for commercial bank performance appraisal and resources distribution by conducting a primary research on domestic commercial bank internal Fund Transfer Pricing management. The creation is that by analyzing the current situation of fund transfer pricing of a commercial bank and its internal and external environment as well, the paper works out a fund transfer pricing management system for a commercial bank which has a certain theoretical and practical signification.