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Funds Transfer Pricing in Emerging Markets

Webinar powered by Marcus Evans

Over the past few years, FTP has been increasingly subject to scrutiny and debate across banking organisations, and regulators have stressed its importance for sound liquidity risk management via a proper attribution of funding costs. Among other things, Basel III requirements have led to an increase in the liquidity buffer held by each bank, raising the double challenge of measuring and allocating the cost of maintaining this buffer. 

In emerging countries, the illiquidity of the local financial markets increases the difficulty to define proper FTP curves using external benchmarks, while the instability of the political and economic environment makes it hard to apply statistical analysis on model product behaviour. 

The aim of this webinar is to discuss the strategic, methodological and practical challenges faced by banks, in particular in emerging markets.

In this webinar, leading FTP practitioners from Prometeia, Mashreq Bank and Russian Agricultural Bank discuss:

  • The current role of FTP in emerging countries
  • How to cope with limited or unstable market data in setting FTP curves
  • The application of behavioural models for banks in emerging markets
  • Integration of capital costs into the FTP framework and the decision making process 
  • Dealing with challenge of allocating the cost of liquidity buffer

Prometeia's Speaker

Sophie Xilan Zhishui He - Prometeia

Sophie Xilan Zhishui He
Sophie is a manager at Prometeia for the Enterprise Risk Management Area, where she worked on methodological and organisational advisory, solutions implementation and international business development. Her expertise regards mainly the definition and implementation of ALM and Treasury risk processes, solutions and methodologies in EMEA banks with a particular focus on FTP and performance management, having acquired experience in defining the FTP curves and FTP framework in illiquid markets during projects with major banks across the region.