About the book

This book focuses on managing return and risk in modern financial institutions. The central theme is that the risks faced by managers and the methods and markets through which these risks are managed are becoming increasingly similar, whether an institution is chartered as a commercial bank, a savings bank, an investment bank, or an insurance company. Although the traditional nature of each sector's product activity is analysed, a greater emphasis is placed on new areas of activities such as asset security, off-balance-sheet banking and international banking.

Content:

PART ONE: Introduction

1 Why Are Financial Intermediaries Special?

2 The Financial Services Industry: Depository Institutions

3 The Financial Services Industry: Insurance Companies

4 The Financial Services Industry: Securities Firms and Investment Banks

5 The Financial Services Industry: Mutual Funds and Hedge Funds

6 The Financial Services Industry: Finance Companies

7 Risks of Financial Intermediation

PART TWO: Measuring Risk

8 Interest Rate Risk I

9 Interest Rate Risk II

10 Market Risk

11 Credit Risk: Individual Loan Risk

12 Credit Risk: Loan Portfolio and Concentration Risk

13 Off-Balance-Sheet Risk

14 Foreign Exchange Risk

15 Sovereign Risk

16 Technology and Other Operational Risks

17 Liquidity Risk PART THREE: Managing Risk

18 Liability and Liquidity Management

19 Deposit Insurance and Other Liability Guarantees

20 Capital Adequacy

21 Product Diversification

22 Geographic Expansion

23 Futures and Forwards

24 Options, Caps, Floors, and Collars

25 Swaps

26 Loan Sales

27 Securitization