Internal Transfer Pricing Including Regulatory and Economic Liquidity Risk

This banking compliance training focuses on a bank’s internal transfer pricing methods and processes. It will clearly explain the methodological background of pricing and its components with examples and will also provide the necessary organizational steps to put this in practice.

Why Should You Attend:

Although banks have considerably refined their internal transfer pricing methods in the last twenty years, the recent financial crisis revealed that severe mispricing of credit and liquidity risk had occurred. In the post-crisis area the problem has not vanished, but is even escalating: tightly narrowing markets for unsecured short term refinancing, increasing funding spreads for longer term bond issues and the ever rising regulatory demand for liquid asset buffers depresses the profitability of banks and thus jeopardizes many business models.

In order to discover and calibrate sustainable business models, banks need to firstly understand and measure the components of their costs. Next, the bank needs to define and operationalize an internal process which incentivizes the originators to pick those external transactions that generate the highest value and fit optimally into the looked-for balance sheet structure. The hedging of the originated transactions need to be exercised and optimized by a central department and finally the overall financial performance needs to be evaluated on an on-going basis.

For Registration:

http://www.complianceonline.com/ecommerce/control/trainingFocus/~product_id=702949?channel=worldconf