Transfer Pricing (TP) Forecasting
New and comprehensive forecasting rule
Business Benefits:
- This enhancement allows users to define and apply forecasted FTP rates in ALMCS for projected business volumes or cashflows. These forecasted TP rates can be configured using new Curve Types in Rate Management and are applied during FTP processing under various forecasting scenarios. This functionality is available for the Straight Term Method as part of this release. Users can align forecasted business growth assumptions with anticipated transfer pricing conditions to support more accurate profitability and margin projections.
- Banks require forward-looking FTP attribution to accurately forecast Net Interest Margins and simulate funding spreads across dynamic balance sheet projections. This feature introduces TP Forecasting support in ALMCS, enabling forecasted FTP rates to be applied on future cashflows or balances in line with strategic planning and stress scenarios.
Steps to Enable
You don't need to do anything to enable this feature.