Introduction to banking

Front Cover
Half Title
Title Page
Copyright Page
Contents
List of figures
List of tables
List of boxes
Preface
Acknowledgements
List of acronyms and abbreviations
Part 1 Introduction to banking
	1 What is special about banks?
		1.1 Introduction
		1.2 The nature of financial intermediation
		1.3 The role of banks
		1.4 Information economies
		1.5 Why do banks exist? Theories of financial intermediation
		1.6 The benefits of financial intermediation
		1.7 Conclusion
		Key terms
		Key reading
		Revision questions and problems
	2 Bank activities and services
		2.1 Introduction
		2.2 What do banks do?
		2.3 Banks and other financial institutions
		2.4 Banking services
		2.5 Banks and the FinTech revolution
		2.6 Conclusions
		Key terms
		Key readings
		Revision questions and problems
		Appendix 2.1 FinTech: a selected glossary
	3 Types of banking
		3.1 Introduction
		3.2 Traditional versus modern banking
		3.3 Types of banking
		3.4 Retail or personal banking
		3.5 Private banking
		3.6 Corporate banking
		3.7 Investment banking
		3.8 Types of banks
		3.9 Conclusions
		Key terms
		Key readings
		Revision questions and problems
	4 International banking
		4.1 Introduction
		4.2 What is international banking?
		4.3 Brief history of international banking
		4.4 Why do banks go overseas?
		4.5 Types of bank entry into foreign markets
		4.6 Advantages and disadvantages of international and cross-border banking
		4.7 International banking services
		4.8 Conclusions
		Key terms
		Key reading
		Revision questions and problems
		Appendix 4.1 Syndicated lending: a selected glossary
	5 Islamic banking
		5.1 Introduction
		5.2 A brief history
		5.3 How an Islamic bank operates
		5.4 Industry features
		5.5 Balance sheet and income statement features
		5.6 Regulating Islamic banks
		5.7 Comparing Islamic and conventional banks
		5.8 Conclusion
		Key terms
		Key reading
		Revision questions and problems
Part 2 Central banking and bank regulation
	6 Central banking
		6.1 Introduction
		6.2 What are the main functions of a central bank?
		6.3 How does monetary policy work?
		6.4 Monetary policy functions of a central bank
		6.5 Why do banks need a central bank?
		6.6 Should central banks be independent?
		6.7 Conclusion
		Key terms
		Key reading
		Revision questions and problems
	7 Bank regulation and supervision
		7.1 Introduction
		7.2 The rationale for regulation
		7.3 Types of regulation
		7.4 The financial safety net
		7.5 Limitations of regulation
		7.6 Causes of regulatory reform
		7.7 Bank capital regulation
		7.8 The 1988 Basel Capital Accord (Basel I)
		7.9 The 1996 amendments to the 1988 Accord
		7.10 The second Capital Accord (Basel II)
		7.11 The third Capital Accord (Basel III)
		7.12 Finalising Basel III
		7.13 Conclusion
		Key terms
		Key reading
		Revision questions and problems
	8 Bank failures and banking crises
		8.1 Introduction
		8.2 The determinants of bank failure
		8.3 Early warning systems for bank soundness
		8.4 Bank restructuring
		8.5 Banking crises
		8.6 Conclusion
		Key terms
		Key reading
		Revision questions and problems
Part 3 Issues in bank management
	9 Banks' balance sheet and income structure
		9.1 Introduction
		9.2 Retail banks' balance sheet structure
		9.3 Investment banks' financial statements
		9.4 Bank performance and financial ratio analysis
		9.5 Conclusion
		Key terms
		Key reading
		Revision questions and problems
	10 Bank financial management
		10.1 Introduction
		10.2 Asset–liability management (ALM)
		10.3 Liquidity management and the importance of reserves
		10.4 Capital adequacy management
		10.5 Off-balance-sheet (OBS) business in banking
		10.6 Loan sales and the process of securitisation
		10.7 Derivative business in banking
		10.8 Conclusion
		Key terms
		Key reading
		Revision questions and problems
	11 Banking risks
		11.1 Introduction
		11.2 Credit risk
		11.3 Interest rate risk
		11.4 Liquidity (or funding) risk
		11.5 Foreign exchange risk
		11.6 Market (or trading) risk
		11.7 Country and sovereign risk
		11.8 Operational and cyber risks
		11.9 Off-balance-sheet risk
		11.10 Sustainability (or ESG) risks
		11.11 Other risks
		11.12 Capital risk and solvency
		11.13 Interrelation of risks
		11.14 Conclusion
		Key terms
		Key reading
		Revision questions and problems
	12 Bank risk management
		12.1 Introduction
		12.2 General risk management
		12.3 Credit risk management
		12.4 Managing the lending function
		12.5 Managing interest rate risk
		12.6 Managing liquidity risk
		12.7 Managing market risk
		12.8 Managing operational risk
		12.9 International risk assessment
		12.10 Conclusion
		Key terms
		Key reading
		Revision questions and problems
Part 4 Comparative banking markets
	13 Banking in the UK
		13.1 Introduction
		13.2 The crisis in UK banking
		13.3 Regulatory reforms and the changing face of UK banking
		13.4 The structure of the UK banking sector
		13.5 Profits and the financial features of UK banks
		13.6 The UK payment system
		13.7 Competition in UK banking
		13.8 Conclusion
		Key terms
		Key reading
		Revision questions and problems
		Appendix 13.1 Demutualisation of the UK building society sector
	14 Banking in Europe
		14.1 Introduction
		14.2 The European Union
		14.3 The Single European Market for financial services
		14.4 Building a new EU financial architecture
		14.5 Structural features and the consolidation trend
		14.6 Balance sheet structure and performance in European banking
		14.7 Conclusion
		Key terms
		Key reading
		Revision questions and problems
	15 Banking in the US
		15.1 Introduction
		15.2 The financial crisis in the US
		15.3 Structure of the US banking and financial systems
		15.4 US payments systems
		15.5 Balance sheet features of US commercial banks
		15.6 Performance of US commercial banks
		15.7 Regulation of the US banking system
		15.8 Conclusion
		Key terms
		Key reading
		Revision questions and problems
	16 Banking in Japan
		16.1 Introduction
		16.2 Structure of banking system
		16.3 Payment systems
		16.4 Banking crises in Japan
		16.5 Changing structure of the financial system
		16.6 Conclusion
		Key terms
		Key reading
		Revision questions and problems
	17 Banking in emerging markets
		17.1 Introduction
		17.2 Benchmarking financial development
		17.3 Finance and growth
		17.4 The macroeconomic outlook
		17.5 Structural features and trends
		17.6 Conclusion
		Key terms
		Key reading
		Revision questions and problems
Part 5 Advanced topics in banking
	18 Banks and markets
		18.1 Introduction
		18.2 Bank intermediation, markets and information
		18.3 The development of the securitisation market
		18.4 Modern securitisation process
		18.5 The 'new wave' of securitisation
		18.6 Types of securitisation
		18.7 Securitisation, credit-rating agencies and monoline insurers
		18.8 The future of securitisation
		18.9 Conclusion
		Key terms
		Key reading
		Revision questions and problems
	19 Mergers and acquisitions
		19.1 Introduction
		19.2 Mergers and acquisitions: definitions and types
		19.3 Recent trends in bank M&As
		19.4 M&A and bank performance
		19.5 Managerial motives for M&As
		19.6 The impact of M&As on bank customers
		19.7 M&As and bank diversification
		19.8 The exploitation of safety-net subsidies and systemic risk
		19.9 Conclusion
		Key terms
		Key reading
		Revision questions and problems
	20 Bank competition and financial stability
		20.1 Introduction
		20.2 Structure-conduct-performance (SCP)
		20.3 Non-structural measures of banking sector competition
		20.4 Comparing competition measures – are they consistent?
		20.5 Competition and risk in banking
		20.6 Bank competition and stability
		20.7 Conclusion
		Key terms
		Key reading
		Revision questions and problems
Appendix A1 Interest rates, bonds and yields
Appendix A2 Introduction to portfolio theory
Glossary
References and further reading
Index
Back Cover