Performance Measurement in Banking: Funds Transfer Pricing (FTP)
Performance Measurement in Banking: Funds Transfer Pricing (FTP)
Author(s): Mihaela Mioara Găman, Cristian Nicolae MarzavanSubject(s): Business Economy / Management, Methodology and research technology, Financial Markets, Accounting - Business Administration
Published by: EDITURA ASE
Keywords: Fund Transfer Pricing; Net Interest Income; Performance; Banking; Funding Centre;
Summary/Abstract: This paper provides an overview of FTP managerial accounting method applied in the banking industry, creates an understanding of the roles of FTP within overall bank performance management and it shows evidence on how various FTP principles and rules define the contribution of the providers and users of bank funds. Using FTP, banks can accurately allocate margin and better understand where profits come from. We try to outline that FTP is a method which can be used by any type of bank to measure and analyze its profitability in different ways (along business units, products and customers) and to better manage the specific components of it market risk. Therefore, is a great progress for banks who implemented FTP to understand both where and how they make money, as well as the potential risks involved, a better analysis conducting towards better results for them.
Journal: Revista de Management Comparat Internațional
- Issue Year: 10/2009
- Issue No: S2
- Page Range: 836-840
- Page Count: 5
- Language: English