The Funds Transfer Pricing's Research Of Regional Commercial Bank

Funds Transfer Pricing (FTP) was first introduced to the banking industry by the Bank of American the 1980s, and it has been widely used in the international banking system since then. Internal funds pricing system, a useful management tool, is the result of interest marketization, financial disintermediation and competition of commercial banks, and develops with the improvement of management and positive competiveness. Domestic commercial banks have set up the FTP system graduately in recent years, and FTP has become an indispensable tool for advanced management of commercial banks due to the development in recent decades.FTP theory is a good combination of modern western fund management theory and management accounting theory, and nowadays most of the main Chinese domestic commercial banks have established developed FTP systems, which are significant in risk management, product pricing, resources configuration and performance appraisal and other fields. Under the process of interest marketization and the revolution of financial system, the domestic regional commercial banks are faced with more severe challenges. Under the requirement of comprehensive fund management, commercial banks are trying to optimize the FTP system continually.In this thesis, I start from domestic and foreign general analysis of FTP theoretically and practically, and then try to indicate the necessity and feasibility of application of FTP system in banking industry under current circumstance from several aspects including the definition of FTP. pricing models, feasibility, optimization methods and so on; meanwhile. I analyze the management modes of FTP from comprehensive aspects under the consideration of real banking industry. Finally I tend to find out the existing problems in application and come up with corresponding recommendations for improvement, based on the case studies of Zaozhuang Bank and researches on application modes of FTP from multiple perspectives.Based on my work experience in real banking industry and the analysis of relative researches, I try to optimize the FTP model to some extent to find out the characterized FTP models under different conditions and to improve banks'ability of market controlling under the process of interest marketization. I hope the model given in this thesis could provide both theoretical and practical values to an extent, and can be a good reference for FTP researches in regional commercial banks.