A Research On Problems And Improvement Of Commercial Bank Funds Transfer Pricing Management

China has taken an important step further in the process of interest rate marketization since Boao Forum for Asia,2018.Interest rate marketization has brought a series of problems to commercial banks—they need major reforms in improving management quality to deal with the declining interest margin and increasing interest rate risks.As one of the core asset-liability management methods,commercial bank Funds Transfer Pricing(FTP)is an important way to improve management quality.It has four main functions and a positive impact on risk management and profits increase of commercial banks.Nowadays,almost all the commercial banks have implemented their own FTP systems.In spite of that,most of the FTP systems are immature.This paper will analyze the FTP system problems commercial banks are facing and discuss the improvement suggestions.Based on the background of interest rate marketization reform,this paper briefly presents the significance and meaning of implementing FTP systems in commercial banks.Secondly,it introduces the concept of FTP and basic theoretical research made by other scholars.Then it comes with the key of this paper—the case study of X bank's FTP system.In the case study,I elaborate the problems of X bank's FTP system and try to make improvement suggestions with my knowledge and hands-on management experience.In the last part of this paper,I propose seven improvement suggestions from the point of pricing measurement and in-depth application.I hope the analysis and suggestions in this paper will to some extent provide both theoretical and practical value for FTP researches in commercial banks.