Home Page Icon
Home Page
Table of Contents for
COVER
Close
COVER
by Steen Blaafalk, Moorad Choudhry
An Introduction to Banking, 2nd Edition
COVER
TITLE PAGE
FOREWORD
PREFACE
LAYOUT OF THE BOOK
PREFACE TO THE FIRST EDITION
ACKNOWLEDGEMENTS
ABOUT THE AUTHOR
PART I: Bank Business and the Markets
Chapter 1: BANK BUSINESS AND CAPITAL
THE BASIC BANK BUSINESS MODEL
BANKING BUSINESS
SCOPE OF BANKING ACTIVITIES
BANKING PRODUCTS
CAPITAL MARKETS
FINANCIAL STATEMENTS AND RATIOS
BIBLIOGRAPHY
NOTES
Chapter 2: CUSTOMER SERVICES AND MARKETING FOR BANK PRODUCTS
MARKETING FINANCIAL SERVICES
CUSTOMER SERVICE
PRODUCT DEVELOPMENT
PRODUCT PRICING
CONCLUSION
NOTES
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
INTRODUCTION
SECURITIES QUOTED ON A YIELD BASIS
SECURITIES QUOTED ON A DISCOUNT BASIS
COMMERCIAL PAPER
REPO
THE CLASSIC REPO
REPO COLLATERAL
LEGAL TREATMENT
MARGIN
FOREIGN EXCHANGE
FX BALANCE SHEET HEDGING
CURRENCIES USING MONEY MARKET YEAR BASE OF 365 DAYS
NOTES
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
MONEY MARKET APPROACH
ALM IN A NEGATIVE YIELD CURVE ENVIRONMENT
CREDIT INTERMEDIATION BY THE REPO DESK
INTEREST‐RATE HEDGING TOOLS
BIBLIOGRAPHY
NOTES
PART II: Asset–Liability Management and Liquidity Risk
Chapter 7: BANK ASSET AND LIABILITY MANAGEMENT I
BASIC CONCEPTS
LIQUIDITY GAP
MANAGING LIQUIDITY
LIQUIDITY MANAGEMENT
THE ALM DESK
CRITIQUE OF THE TRADITIONAL APPROACH TO ALM
STRATEGIC ALM
CONCLUSIONS
BIBLIOGRAPHY
NOTES
Chapter 8: ASSET AND LIABILITY MANAGEMENT II: THE ALCO
TRADITIONAL ALCO MISSION
ALCO GOVERNANCE BEST‐PRACTICE PRINCIPLES
CONCLUSIONS
APPENDIX 8.1: ALCO RECOMMENDED TERMS OF REFERENCE
NOTES
Chapter 9: BANK LIQUIDITY RISK MANAGEMENT I
BEST‐PRACTICE LIQUIDITY RISK MANAGEMENT FRAMEWORK
THE LIQUIDITY POLICY STATEMENT
CONCLUSION
NOTE
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
BACKGROUND
SETTING THE BANK POLICY STANDARD
THE TERM LIQUIDITY PREMIUM
TEMPLATE FTP REGIMES
CONCLUSIONS
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
THE PARTIES TO A SECURITISATION
STRUCTURAL FEATURES OF ABS
PRACTICAL ISSUES WITH ORIGINATING AN OWN‐ASSET SECURITISATION TRANSACTION
SUMMARY AND CONCLUSIONS
BIBLIOGRAPHY
NOTE
PART III: Strategy, Regulatory Capital and Case Studies
Chapter 14: STRATEGY SETTING
THE STRATEGIC PLANNING PROCESS
CONSIDERATIONS IN THE DEVELOPMENT OF STRATEGY
STRATEGY AND THE BANK BUSINESS MODEL
EVALUATION OF THE STRATEGIC PLAN
CONCLUSION
BIBLIOGRAPHY
Chapter 15: BANK REGULATORY CAPITAL, BASEL RULES AND ICAAP
THE BANKING MODEL AND CAPITAL
KEY CAPITAL CONSIDERATIONS
CAPITAL MANAGEMENT POLICY
CAPITAL ADEQUACY AND STRESS TESTING
ICAAP PROCESS – WORKED EXAMPLE OF PRESENTATION
STRESS TESTING
DIVIDEND POLICY
CASE STUDY: INTERNAL CAPITAL ASSESSMENT
CONCLUSIONS
BIBLIOGRAPHY
NOTES
Chapter 16: MANAGING OPERATIONAL RISK
OPERATIONAL RISK OVERVIEW
CONDUCT RISK
OPERATIONAL RISK MEASUREMENT
OPERATIONAL RISK MEASUREMENT CONCEPTS
BASEL OPERATIONAL RISK FRAMEWORK
STANDARDISED APPROACH
QUALITATIVE INPUT AND MODEL VALIDATION
OPERATIONAL RISK MANAGEMENT FRAMEWORK
CONCLUSIONS
Chapter 17: ADVICE AND PROBLEM SOLVING: CASE STUDIES
HOW TO STUDY THIS CHAPTER
Appendix A: FINANCIAL MARKETS ARITHMETIC
INTEREST: PRESENT AND FUTURE VALUE
MULTIPLE CASH FLOWS
CORPORATE FINANCE PROJECT APPRAISAL
INTERPOLATION AND EXTRAPOLATION
NOTE
Appendix B: ABBREVIATIONS AND ACRONYMS
INDEX
END USER LICENSE AGREEMENT
Search in book...
Toggle Font Controls
Playlists
Add To
Create new playlist
Name your new playlist
Playlist description (optional)
Cancel
Create playlist
Sign In
Email address
Password
Forgot Password?
Create account
Login
or
Continue with Facebook
Continue with Google
Sign Up
Full Name
Email address
Confirm Email Address
Password
Login
Create account
or
Continue with Facebook
Continue with Google
Next
Next Chapter
Table of Contents
Add Highlight
No Comment
..................Content has been hidden....................
You can't read the all page of ebook, please click
here
login for view all page.
Day Mode
Cloud Mode
Night Mode
Reset