This Course will cover the foundations of Transfer pricing in Banking. It will cover all aspects of the Transfer Pricing models and methodology in a way that will make it accessible to non-specialists in the subject but with the objective that the trainees will be able to become effective in the unit in charge of defining and/ or managing transfer pricing. We will discuss Fund Transfer Pricing (FTP) for risk-based cost allocations (credit risk, interest rate risk and liquidity risk) and Operational Cost Allocation. The concepts will be illustrated by quantitative case studies.
For the FTP descriptions we will not explain advanced risk modelling but use the output of the models for the risk allocations. Detailed knowledge of the technics and models may be gained in the Asset and Liability Management training. Likewise for Credit Risk Management.
Define the transfer price for all risk classes
Gain a deep understanding of Transfer Pricing and will be able to enhance their role in the ALM and/ or MIS activities of the banks.
All staff that are involved in the use and/or calculations of transfer pricing,=Staff defining and using product pricing=the profitability and performance analysis=MIS and management accounting=Banking managers.
