The Principles of Banking
- 14h 50m
- Moorad Choudhry
- John Wiley & Sons (US)
- 2012
An essential guide for bankers and students of finance everywhere, The Principles of Banking reiterates that the primary requirement of banking—sound capital and liquidity risk management—had been forgotten in the years prior to the financial crash. Serving as a policy guide for market practitioners and regulators at all levels, the book explains the keys to success that bankers need to follow during good times in order to be prepared for the bad, providing in-depth guidance and technical analysis of exactly what constitutes good banking practice.
Accessible to professionals and students alike, The Principles of Banking covers issues of practical importance to bank practitioners, including asset-liability management, liquidity risk, internal transfer pricing, capital management, stress testing, and more. With an emphasis on viewing business cycles as patterns of stable and stressful market behavior, and rich with worked examples illustrating the key principles of bank asset-liability management, the book is an essential policy guide for today and tomorrow. It also offers readers access to an accompanying website holding policy templates and teaching aids.
- Illustrates how unsound banking practices that were evident in previous bank crashes were repeated during the creation of the 2007-2008 financial market crisis
- Provides a template that can be used to create a sound liquidity and asset-liability management framework at any bank
- An essential resource for the international banking community as it seeks to re-establish its credibility, as well as for students of finance
- Explains the original principles of banking, including sound lending policy and liquidity management, and why these need to be restated in order to avoid another bank crisis at the time of the next economic recession
- Covers topics of particular importance to students and academia, many of which are marginally—if ever—addressed in current text books on finance
Written by a banking practitioner with extensive professional and teaching experience in the field, The Principles of Banking explains exactly how to get back to basics in risk management in the banking community, essential if we are to maintain a sustainable banking industry.
About the Author
Moorad Choudhry is Treasurer, Corporate Banking Division at The Royal Bank of Scotland. He was previously Head of Treasury at Europe Arab Bank, Head of Treasury at KBC Financial Products, and Vice President in Structured Finance Services at JPMorgan Chase Bank. He began his career at the London Stock Exchange in 1989.
He is Visiting Professor at the Department of Economics, London Metropolitan University, and Chair of the University's Centre for EMEA Banking, Finance and Economics. He is also Visiting Professor at the Department of Mathematical Sciences, Brunel University; Visiting Research Fellow at the ICMA Centre, University of Reading; and Visiting Teaching Fellow at the Department of Management, Birkbeck, University of London.
Moorad is a Fellow of the Chartered Institute for Securities & Investment, a Fellow of the ifs-School of Finance, a Fellow of the Global Association of Risk Professionals, and a Fellow of the Institute of Sales and Marketing Management. He is Managing Editor of theInternational Journal of Monetary Economics and Finance, a member of the Education Advisory Board of the Association of Corporate Treasurers, and a member of the Editorial Boards of Qualitative Research in Financial Markets, Securities and Investment Review, the Journal of Structured Finance, and American Securitization.
In this Book
-
A Primer on Bank Business and Balance Sheet Risk
-
Bank Regulatory Capital
-
Banking and Credit Risk
-
A Primer on Securitisation
-
The Yield Curve
-
Asset–Liability Management I
-
Asset–Liability Management II
-
Asset-Liability Management III: Trading and Hedging Principles
-
Asset–Liability Management IV: The ALCO
-
The ALCO: Terms of Reference and Treasury Operating Model
-
Risk Reporting, Risk Policy and Stress Testing
-
Principles of Bank Liquidity Management
-
Liquidity Risk Metrics
-
Liquidity Risk Reporting and Stress Testing
-
Internal Funds Pricing Policy
-
Bank Strategy I: Formulating Strategy and Direction
-
Bank Strategy II: Capital and Funding Management
-
Principles of Corporate Governance
-
Applications Software, Policy Templates and Spreadsheet Models
-
Afterword
-
List of Terms and Their Abbreviations
