The Principles of Banking (eBook)

The ultimate guide for bank management: how to survive and
thrive throughout the business cycle

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

* Offers readers access to a companion website featuring
invaluable learning and teaching aids

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.

"engaging and interesting and, more importantly, easily
understood, allowing a clear picture to emerge of how the principle
or concept under discussion is to be applied in the real
world."

- Graeme Wolvaardt, Head of Market & Liquidity Risk
Control, Europe Arab Bank Plc