The Design And Implementation Of Funds Transfer Pricing System In Small And Medium-sized Commercial Banks

Internal funds transfer pricing(FTP)management of commercial banks is the core of asset and liability management and is also an imp ortant means to improve management level in commercial banks.With its development and application,information technology evolves from a tool of simply efficiency increasing to a traction to enhance the core competitiveness of the commercial banks gradual ly.Currently five state-owned Bank and some joint-stock banks have established a set of pricing system including funds transfer pricing.But for the most small and medium sized commercial banks,construction of internal funds transfer pricing mechanism lags,which has not yet formed a complete set of rigorous theoretical framework and mature management system and had practical value.With the gradual deepening of interest rate liberalization,the full integration of finance and information has put forward new challenges for financial innovation and risk management under the support of informative conditions.Therefore,strengthening the risk management of interest rate,enhancing product pricing mechanism and evaluating the operating results of each business unit objectively and accurately will be the core to gain competitive advantage and build a sustainable profitability of small and medium commercial banks.The development of internal funds transfer pricing system has become an important issue for small and medium sized commercial banks to enhance the management level.Firstly,this paper analyzes and explains the background,the theoretical basis of internal funds transfer pricing in commercial banks and domestic FTP practical application.And it takes bank A for example,starting from the analysis of the FTP system needs,and introduces each module's function and then models.Secondly,it applies the Oracle and Greeplum database and informatica analysis techniques of data and processing tools comprehensively,and proposes overall FTP system design and provide a more detailed description of the function an d implementation of FTP system: Funds transfer pricing(FTP)system mainly provides the basic setting,the yield curve,adjustments management,pricing management,pricing operation and FTP reporting.Finally,it provides the testing and maintaining instructions of various functions in the system,in order to give reference for small and medium sized commercial banks to build FTP system effectively.