Investment portfolio and funds transfer pricing

Module 04 / 5 · 65 min

Price and classify the bank's securities within NBE limits, and use funds transfer pricing to price products and measure branch profitability.

In this module you will learn to

Describe the instruments in an Ethiopian bank's investment portfolio and their role
Price a T-bill and convert between discount and yield
Classify securities under IFRS 9 and explain the ALM consequences
Apply the SBB/92/2024 investment limits to a proposed investment
Build a matched-maturity FTP rate and use it for pricing and branch results

Built on

Erudite Africa course specification: Topic 1.g Treasury and Forex Management, Level 2 Intermediate (October 2026)
Erudite Africa: Training Module, Ethiopian Context, programme overview and regulatory register (October 2026)
National Bank of Ethiopia Proclamation No. 1359/2025 and NBE Monetary Policy Committee release No. 7 (13 July 2026)
NBE directives as listed in the lessons: FXD/01/2024, FXD/04/2026, FXD/05/2026, SBB/92/2024, SBB/95/2025, SBB/96/2025, NBE/INT/13/2026
NBE Risk Management Guidelines (May 2010)

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.