An Introduction to Banking: Principles, Strategy and Risk Management

Content: Foreword ix Preface xi Preface to the First Edition xv Acknowledgements xvii About the Author xix PART I BANK BUSINESS AND THE MARKETS 1 1 BANK BUSINESS AND CAPITAL 3 2 CUSTOMER SERVICES AND MARKETING FOR BANK PRODUCTS 29 3 CREDIT ASSESSMENT AND MANAGING CREDIT RISK 49 4 THE MONEY MARKETS 95 5 THE YIELD CURVE 131 6 INTRODUCTION TO MONEY MARKET DEALING AND HEDGING 167 PART II ASSET   LIABILITY MANAGEMENT AND LIQUIDITY RISK 205 7 BANK ASSET AND LIABILITY MANAGEMENT I 207 8 ASSET AND LIABILITY MANAGEMENT II: THE ALCO 247 9 BANK LIQUIDITY RISK MANAGEMENT I 265 10 LIQUIDITY RISK MANAGEMENT II: BASEL III LIQUIDITY, LIABILITIES STRATEGY, STRESS TESTING, COLLATERAL MANAGEMENT AND THE HQLA 287 11 BUSINESS BEST-PRACTICE BANK INTERNAL FUNDS TRANSFER PRICING POLICY 329 12 NET INTEREST INCOME (NII), NET INTEREST MARGIN (NIM) AND THE MANAGEMENT OF INTEREST-RATE RISKIN THE BANKING BOOK 343 13 SECURITISATION MECHANICS FOR BALANCE SHEET MANAGEMENT 375 PART III STRATEGY, REGULATORY CAPITAL AND CASE STUDIES 391 14 STRATEGY SETTING 393 15 BANK REGULATORY CAPITAL, BASEL RULES AND ICAAP 419 16 MANAGING OPERATIONAL RISK 493 17 ADVICE AND PROBLEM SOLVING: CASE STUDIES 505 Appendix A Financial Markets Arithmetic 531 Appendix B Abbreviations and Acronyms 549 Index 553