Book description
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.
Moorad Choudhry is Treasurer, Corporate Banking Division at The
Royal Bank of Scotland.
He is Visiting Professor at the
Department of Mathematical Sciences, Brunel University;
Visiting
Professor at the Department of Economics, London
Metropolitan University; and Visiting Teaching Fellow at the
Department of Management, Birkbeck, University of London. He is a
Fellow of the Chartered Institute for Securities & Investment and
a Fellow of the ifs-School of Finance.
He lives in Surrey, England.
