##  [Funds Transfer Pricing](/index.php/funds-transfer-pricing) 

  ##  [Funds Transfer Pricing](https://social.quantumdictionary.io/funds-transfer-pricing-0) 

  

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**Social Sciences Dictionary**

 







 

 

 

 



 

 

 

 

Definition

An internal treasury methodology that assigns transfer rates to sources and uses of funds so that interest income and funding costs are allocated to business units or products; FTP converts a bank’s funding structure and market costs into intra‑entity rates that measure unit profitability and incentivize balance‑sheet behaviour.