CeFPro Connect

Article
Why FTP Is Becoming a Strategic Power Tool
Jin Li argues that funds transfer pricing is shifting from a compliance exercise to a strategic engine for risk-based pricing, liquidity management, and balance sheet optimization. As rate cycles turn and liquidity scrutiny intensifies, banks that modernize FTP can sharpen profitability, governance, and regulatory confidence.
Mar 03, 2026
Center for Financial Professionals
Center for Financial Professionals ,
Tags: ALM, Treasury and Liquidity Risk
Why FTP Is Becoming a Strategic Power Tool
The views and opinions expressed in this content are those of the thought leader as an individual and are not attributed to CeFPro or any other organization
  • FTP is shifting from compliance reporting to a strategic risk-based pricing tool
  • Rate cut cycles and liquidity scrutiny are driving renewed investment in methodology
  • Strong ITP and LTP frameworks sharpen pricing funding strategy and ROE
  • Direct linkage to LCR NSFR and stress metrics strengthens regulatory confidence
  • Intraday liquidity and granular attribution require coherent design to avoid double counting
  • FTP increasingly translates balance sheet risk into forward-looking business signals
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