When Treasury and business units use different assumptions about the cost of funds, product profitability becomes difficult to measure and accountability less clear. Eskhata Bank's redesigned Funds Transfer Pricing framework provides a consistent approach to internal funding costs, risk allocation and liquidity management, offering practical lessons for banks operating in markets with limited financial data.
Exchange-rate volatility in Turkey after 2018 has become not an episodic shock but a persistent factor linked to the dynamics of banking margins. Once this relationship is measured and the influence of local and global factors is separated, it becomes a practical tool. The estimated sensitivity of margins to volatility can then be used as a reference parameter for Funds Transfer Pricing (FTP).
