China’s Commercial Banks’ Internal Funds Transfer Pricing Study

In recent years, as China’s interest rate market to accelerate the pace of commercial bank capital management system is moving full intensive management paradigm shift, to establish a scientific internal funds transfer pricing system has been the general trend. Commercial banks’ internal funds transfer pricing system is based on commercial bank management and the need for operating funds, fund management center by the Bank in accordance with the various branches of the internal funds transfer pricing accounting business capital costs and benefits of a management model. By building internal funds transfer pricing system can achieve centralized management of interest rate risk, the higher its pricing mechanism in conducting business-oriented line, adjust the upper and lower rows of capital flows and flows, improve bank management level plays an important role in optimizing the allocation of resources to the commercial banks, control of operating costs and interest rate risk, improve operational efficiency, fair performance appraisal has a greater impact. As a way to optimize the allocation of management resources, and internal funds transfer pricing system has caused widespread concern in the industry and research.Based on the large number of research scholars inside and outside the start for FTP (Funds Transfer Pricing) give a detailed exposition of the concept, and analyzes the background of internal funds transfer pricing system, the results and discusses the three-FTP three modes of operation and the specific valuation methods, and how to adjust the yield curve, followed by the implementation of various changes to the bank after the FTP management changes consequent to enumerate elaboration. Finally, the article describes the actual operating results, a commercial bank to implement FTP proposed optimization analysis and specific policy recommendations FTP internal funds transfer pricing system, which is the significance of this study.