Funds transfer pricing (FTP) is a system used to estimate how funding is adding to the overall profitability of a company. FTP sees its most significant use in the banking industry where financial institutions use FTP as a way to analyze the strengths and failings of the firm within the institution. Funds transfer pricing may also help with determining the profitability of various product lines the bank offers, the performance of branch outlets, and judge the effectiveness of processes.
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