funding-cost-decomposition

Funding cost decomposition analyzes cost of funds by breaking down deposit pricing, wholesale funding spreads, FTP curves, and liquidity premiums. It evaluates funding mix changes and prepares treasury funding cost reports for ALCO using detailed funding composition and historical data.

Funds Transfer Pricing (FTP) allocates funding costs to business units by assessing the accuracy and fairness of FTP curves and methodologies. It decomposes funding costs into FTP allocations, liquidity premiums, and wholesale spreads, explaining why the overall cost of funds fluctuates.

To analyze cost of funds increases, decompose funding cost drivers across deposit pricing, wholesale funding, and liquidity premiums. The Skill requires detailed deposit and wholesale portfolio data, FTP curves, market rates, and operating costs to identify specific drivers behind funding mix changes.

Yes, you can evaluate FTP methodology accuracy by analyzing detailed deposit and wholesale portfolio data alongside FTP curves and market rates. The Skill assesses FTP fairness, decomposes cost allocations, and explains funding mix changes for comprehensive treasury analysis.

Comprehensive liquidity premium and deposit pricing analysis requires detailed funding composition, deposit and wholesale portfolio data, FTP curves, market rates, historical data, and operating costs. These inputs allow the Skill to decompose cost drivers and evaluate funding mix changes accurately.