Bank Valuation and Value-Based Management

INSEAD professor Jean Dermine draws on his 25 years of research in banking and development in creating a framework that investment bankers, regulators, and risk managers will use to analyze, control, and predict value and risk in banks.

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Bank Valuation & Value-Based Managementprovides bankers, bank regulators, auditors, andrisk managers with foundational concepts andpractical tools for effectively managing a bank. An expert in asset and liability management,European financial markets, and banking theory,Jean Dermine provides rigorous foundations todiscuss asset and liability management at a globallevel, with an integrated focus on an institution'sbanking book. He covers bank valuation, fundtransfer pricing, deposit and loan pricing, riskmanagement, and performance measurement, andaddresses two high-profile issues for banks worldwide:portfolio credit risk and liquidity risk. This thorough and innovative guide presentsinsightful coverage on the hazards of measuringportfolio credit risk, the impact of liquidity riskon fund transfer pricing, and the practice ofperformance measurement in the bankingindustry. Numerous real-world examples fromthe U.S. subprime crisis help illustrate the natureand dynamics of these issues.
Inside, you will find a framework for discussingsuch managerial issues as: Bank valuation Fund transfer pricing Deposit pricing Capital management Loan pricing and provisioning Securitization Measurement of interest rate risk Performance measurement At the same time that it helps readers developan intuitive sense for asset-liability management,this practical book follows through with rigorousmathematical formulas and examples from theinternational banking community. In addition,exercises are incorporated throughout the text tofacilitate discussions of how theoretical conceptscan be applied to real-world problems. Thisauthoritative guide to bank management alsofeatures an exclusive companion Web site,www.mhprofessional.com/bankvaluation, whichincludes additional chapters and exercise solutionsthat serve as key supplements to the core text. Creating value in banking depends on a rocksolidunderstanding of what drives value and theright valuation model to help make the tough decisionsthat will enhance shareholder value. BankValuation & Value-Based Management is yourone-stop reference for each of these critical issues.