Since the establishment of the LCR and NSFR at the back of the 2008 financial crisis, banks have been trying to understand the true cost of funding with liquidity and interest rate risk acting as key components to this variable. A decade later, not only is the cost of funding understood but banks have also managed to incorporate this into their FTP models at a level of granularity that reflects the impact it has on the business. Now that this is effectively being done banks need to ensure FTP is not being treated as a cost centre but as a tool to target P&L. This is especially true in the context of the outbreak which has cause huge amounts of balance sheet volatility and is also expected to leave behind residual effects. With good balance sheet management and FTP, banks can steer the business out of volatility.
With this in mind, this marcus evans meeting will look at how banks are using FTP for balance sheet optimisation and to target P&L due to side effects from COVID-19. It will offer case studies on how costs of funding and in turn the balance sheet were affected during the outbreak, and how FTP faired with managing this volatility. The meeting will also look at challenges experienced for FTP in the retail and corporate business as well as markets business. In respect to the former two entities, there will be practical examples of how prepayment and deposit risk is modeled and how such models enable pricing of embedded optionality. For the markets business, sessions will address how initial and variational margin affect the cost of funding.
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Can’t physically attend this conference?
Don’t worry we have you covered! If your ability to travel is restricted we know your appetite for key business insights remains so our Live+ digital platform enables you to fully participate in the event remotely. Of course it provides access to live online streams of all session, but much more than that, it ensures you are able to engage with speakers directly allowing you to participate in Q&A, relevant breakout groups as well as event polling and other insights and resources delivered during the event. We realise interacting with other delegates is key to your event experience, so our innovate online solution allows you to set up online meetings with other virtual and physical attendees throughout the event; ensuring you still walk away with those key contacts that can make a tangible difference to you and your business. The platform will continue to host all event content on-demand for you to re-visit and continue to access for up to 6 months post event.
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