Registration and breakfast

Chair’s opening remarks

VALUE OF FTP - PANEL

Examining FTP’s evolving role as a diagnostic tool

• Examining the resource demands of daily, transaction -level FTP analysis
• Leveraging daily FTP for precision and margin control
• Evaluating the appropriateness of monthly or quarterly FTP
• Considering advancements to make FTP more accessible
• Leveraging FTP to strategically avoid unprofitable business activities
• Differentiating strategic vs. operational applications of FTP across bank sizes
• Assessing the impacts of limited pricing control on FTP insights

TAKING PROFITABILITY TO THE NEXT LEVEL

• Provide banking profitability reporting on an instrument, customer, product and org unit basis on a quarterly basis
• Understanding how large volumes of data and flexible hierarchies enable a wide range of reporting that is specifically designed to meet informational needs of end users
• Dive into how separate customer profitability modeling platform provides balance sheet and P&L forecasts at the customer level
• Projecting both existing and new instruments on a dynamic basis using key input data
• Examining Funds Transfer Pricing’s critical role in the historical and forecasted profitability processes and its evolution at CFSI
• Open discussion on attendee companies’ approach and application of FTP

Morning refreshment and networking

DEPOSIT FTP

Enhancing FTP strategies for demand deposits in a dynamic environment

• Adapting FTP for demand deposits in changing interest rate environments
• Sharing best practises for building FTP frameworks that respond to economic volatility and rate cycles
• Understanding the need for flexible FTP methodologies that reflect changing deposit stickiness and value
• Exploring the implications of deposit surges and outflows on internal pricing and balance sheet management
• Reviewing how demand deposit behaviour has evolved across key macroeconomic periods
• Examining the challenges of applying static FTP frameworks to dynamic and shifting deposit conditions
• Evaluating the business impact of inconsistent FTP incentives on pricing and strategy
• Assessing whether institutions are moving toward integrated or siloed FTP approaches

ALIGNING FTP WITH INTEREST RATE RISK ANALYSIS – PANEL

Enhancing alignment between FTP and Interest Rate Risk Management for strategic decision making

• Understanding the core purpose of FTP in transferring interest rate and other risks from business lines to the center/head office (Treasury)
• Identifying common challenges in aligning FTP assumptions with IRR models
• Discussing institutional practises for harmonizing FTP and IRR analysis
• Ensuring FTP accurately reflects changes in the interest rate environment
• Aligning FTP assumptions with real economic impacts across business lines
• Exploring best practices for modeling and adjusting FTP during both rising and falling rate cycle

Lunch break and networking

IDENTIFYING FUNDING SOURCES

Identifying and categorizing reliable funding sources

• Ensuring collateral is eligible and accessible for use when needed, including rehypothecation rights
• Clarifying the role of FTP in funding strategy
• Conducting dry-run exercises to validate operational readiness
• Exploring the need to diversify wholesale funding inputs beyond FHLB
• Navigating organizational sensitivities around adjusting FTP assumptions and profit/cost attribution.
• Assessing regulatory scrutiny and stress test implications of single source dependency

Using FTP to Create and Manage the Bank within the Bank

• Match funded FTP processes: Creating a bank within a bank
• Enhancing measurement and management
• Ensuring that FTP approaches accurately value and transfer risk to the central funding center from business lines
• Developing reporting capabilities that allow isolation and demonstrate performance of the bank within the bank
• Various roles of FTP within a comprehensive risk management framework

Afternoon refreshment break and networking

TREASURY RISK MANAGEMENT

Mitigating treasury risk accumulation in FTP frameworks

• Evaluating management accounting, and strategic implications of managing Treasury’s FTP risk
• Understanding the drivers of treasury losses/gains from asymmetric deposit and loan growth
• Understanding how much treasury is subsidizing the lines of business vs not.
• Rebalancing risk accountability between treasury and business lines to ensure long term resilience
• Moving from static to dynamic FTP frameworks that reflect real-time risk and stress scenarios
• Aligning FTP incentives to discourage overly aggressive deposit pricing and growth strategies
• Appropriately passing back excess volatility to lines of business
• Considering strategic decisions taken at the center and how those benefits/costs should be allocated

INTEGRATION OF ALM, LIQUIDITY, CAPITAL AND FTP SYSTEMS – PANEL

Integrating ALM, Liquidity, Capital and FTP systems with organizational barriers

• Exploring the impact of system fragmentation on data consistency, decision-making, and strategic alignment
• Addressing the challenges posed by differing ownership across departments
• Identifying practical solutions for creating a unified infrastructure that connects risk and finance functions
• Examining the benefits of full integration of FTP as a strategic tool not just a reporting mechanism
• Improving consistency across treasury, risk and finance functions
• Exploring real world examples of how banks bridge mismatches between FTP and ALM
• Understanding how FTP and ALM models can reflect different assumptions about interest rate and liquidity risk

Chair’s closing remarks

End of workshop