Setting Up Funds Transfer Pricing

On the Funds Transfer Pricing page, you can select the funds transfer pricing (FTP) method and other criteria that are used throughout the application for the FTP calculations associated with each defined product type.

You can edit all user-defined settings by default.

Note: The None row is only available if your institution is licensed for Organization Profitability.

1. Navigate to Setup > FTP.
2. Set the global assumptions.
   1. Select All Outstanding Balances or Outstanding Balances Less Capital Allocation for Data Cost Value.
      Use this value when calculating a loan product's funding cost.
   2. Select the Funding Curve Basis.
      This setting affects interest rate calculations.
   3. Use Default FTP Rate to specify a default FTP rate for instruments that do not have the appropriate information to calculate the FTP rate.
      At the end of the monthly update process, if any instruments use this rate, then a Default FTP Rate report listing these instruments generates automatically.
3. Select Add or determine which existing FTP method to edit.
4. Select a situation and follow the corresponding steps.

   Situation	Steps
   Specifying FTP Settings for Loans or Maturing Deposit Products	Select Match Funded in the FTP Method column. Select a Funding Curve. Select Apply Prepayments to apply prepayments to cash flows. If you set up prepayments for loans on the Chart of Accounts setup page, then those rates are used. Your institution must be licensed for Forecasting for this option to be available.
   Specifying FTP Settings for Non-Maturing Deposit Products Using a Funding Curve	Select Multi/Single Pool in the FTP Method column. Select a Funding Curve. Specify the number of months for the product's expected life in the Expected Life column.
   Specifying FTP Settings for Non-Maturing Deposit Products Using an Individual Point on a Funding Curve	Select Multi/Single Pool in the FTP Method column. Expand the Funding Curve list to choose an individual point on the funding curve.

5. Select the link in the Accounts/Products column to select products on the Select Accounts page.
6. Select or clear products, and then select Apply to return to the Funds Transfer Pricing page.

   The Select Accounts page alphabetically lists all products added in the Loan Applications and Deposit Applications setup screens. You cannot edit or delete products. To modify or delete products, return to the appropriate applications page and make any changes there.

   If your institution is licensed for Organization Profitability, then accounts from the Chart of Accounts are also available. Accounts that are linked to a product do not show in the list to prevent duplication.

7. Select Save.