Book description
A practical primer to the modern banking operationIntroduction to Banking, Second Edition is a comprehensive and jargon-free guide to the banking operation. Written at the foundational level, this book provides a broad overview of banking to give you an all-around understanding that allows you to put your specialty work into context within the larger picture of your organization. With a specific focus on risk components, this second edition covers all key elements with new chapters on reputational risk, credit risk, stress testing and customer service, including an updated chapter on sustainability. Practical material includes important topics such as the yield curve, trading and hedging, asset liability management, loan origination, product marketing, reputational risk and regulatory capital.
This book gives you the context you need to understand how modern banks are run, and the key points operation at all levels.
- Learn the critical elements of a well-structured banking operation
- Examine the risk components inherent in banking
- Understand operational topics including sustainability and stress testing
- Explore service-end areas including product marketing and customer service
Banks continue to be the heart of the modern economy, despite the global financial crisis —they have however become more complex. Multiple layers and a myriad of functions contribute to the running of today's banks, and it's critical for new and aspiring bankers to understand the full breadth of the operation and where their work fits in. Introduction to Banking, Second Edition provides an accessible yet complete primer, with emphasis on the areas that have become central to sustainable banking operation.
Table of contents
- COVER
- TITLE PAGE
- FOREWORD
- PREFACE
- PREFACE TO THE FIRST EDITION
- ACKNOWLEDGEMENTS
- ABOUT THE AUTHOR
-
PART I: Bank Business and the Markets
- Chapter 1: BANK BUSINESS AND CAPITAL
- Chapter 2: CUSTOMER SERVICES AND MARKETING FOR BANK PRODUCTS
-
Chapter 3: CREDIT ASSESSMENT AND MANAGING CREDIT RISK
- PART 1
- CREDIT PROCESS
- LOAN ORIGINATION PROCESS STANDARDS
- QUALITATIVE FACTORS: RETAIL AND NON‐RETAIL EXPOSURES
- INTERNAL RATINGS
- COUNTERPARTY RISK PARAMETERS
- DEFAULTS EVENTS AND MEASURES
- PRODUCT CREDIT RISK MEASUREMENT
- CREDIT RISK TERMINOLOGY
- MODEL DEVELOPMENT
- RISK MONITORING AND MODEL VALIDATION
- TRADING BOOK CREDIT EXPOSURES
- PART 2
- CONCLUSIONS
- NOTE
- Chapter 4: THE MONEY MARKETS
-
Chapter 5: THE YIELD CURVE
- IMPORTANCE OF THE YIELD CURVE
- USING THE YIELD CURVE
- YIELD‐TO‐MATURITY YIELD CURVE
- ANALYSING AND INTERPRETING THE YIELD CURVE
- THEORIES OF THE YIELD CURVE
- THE ZERO‐COUPON YIELD CURVE
- CONSTRUCTING THE BANK'S INTERNAL YIELD CURVE
- CALCULATION ILLUSTRATIONS
- UNDERSTANDING FORWARD RATES
- SONIA YIELD CURVE
- CONCLUSIONS
- APPENDIX
- REFERENCES
- APPENDIX
- BIBLIOGRAPHY
- NOTES
- Chapter 6: INTRODUCTION TO MONEY MARKET DEALING AND HEDGING
-
PART II: Asset–Liability Management and Liquidity Risk
- Chapter 7: BANK ASSET AND LIABILITY MANAGEMENT I
- Chapter 8: ASSET AND LIABILITY MANAGEMENT II: THE ALCO
- Chapter 9: BANK LIQUIDITY RISK MANAGEMENT I
-
Chapter 10: LIQUIDITY RISK MANAGEMENT II: BASEL III LIQUIDITY, LIABILITIES STRATEGY, STRESS TESTING, COLLATERAL MANAGEMENT AND THE HQLA
- BASEL III LIQUIDITY METRICS
- OPTIMUM LIABILITIES STRATEGY AND MANAGING THE HIGH‐QUALITY LIQUID ASSETS (HQLA) PORTFOLIO
- THE LIQUID ASSET BUFFER
- LIQUIDITY REPORTING, STRESS TESTING, ILAAP, AND ASSET ENCUMBRANCE POLICY
- LIQUIDITY STRESS TESTING
- INDIVIDUAL LIQUIDITY ADEQUACY ASSESSMENT PROCESS
- INTRA‐DAY LIQUIDITY RISK
- ASSET ENCUMBRANCE
- COLLATERAL FUNDING MANAGEMENT, FVA, AND CENTRAL CLEARING FOR OTC DERIVATIVES
- CONCLUSIONS
- NOTES
- Chapter 11: BUSINESS BEST‐PRACTICE BANK INTERNAL FUNDS TRANSFER PRICING POLICY
-
Chapter 12: NET INTEREST INCOME (NII), NET INTEREST MARGIN (NIM) AND THE MANAGEMENT OF INTEREST‐RATE RISK IN THE BANKING BOOK
- NET INTEREST INCOME
- NET INTEREST MARGIN
- INTEREST‐RATE RISK IN THE BANKING BOOK
- SIMULATION ANALYSIS
- THE MANAGEMENT OF GAP RISK
- THE MANAGEMENT OF BASIS AND OPTION RISKS
- THE MANAGEMENT OF PREPAYMENT RISK
- THE MANAGEMENT OF PIPELINE RISK
- THE MANAGEMENT OF CAP AND FLOOR RISK
- BASEL COMMITTEE: HIGH‐LEVEL PRINCIPLES FOR INTEREST‐RATE RISK IN THE BANKING BOOK
- CONCLUSIONS
- NOTE
- Chapter 13: SECURITISATION MECHANICS FOR BALANCE SHEET MANAGEMENT
- PART III: Strategy, Regulatory Capital and Case Studies
- Appendix A: FINANCIAL MARKETS ARITHMETIC
- Appendix B: ABBREVIATIONS AND ACRONYMS
- INDEX
- END USER LICENSE AGREEMENT
Product information
- Title: An Introduction to Banking, 2nd Edition
- Author(s):
- Release date: April 2018
- Publisher(s): Wiley
- ISBN: 9781119115892
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