The principles of banking / Moorad Choudhry [and six others].

Format:

Book

Author/Creator:

Choudhry, Moorad, author.

Series:

Wiley Finance

Language:

English

Subjects (All):

Banks and banking.

Finance.

Physical Description:

1 online resource (866 pages)

Edition:

2nd ed.

Place of Publication:

Hoboken, NJ : John Wiley & Sons, Inc., [2022]

Summary:

"Hinging on basic principles, this banking handbook omits a lot of product detail and complex mathematics on the more technical aspects of finance and focuses on key issues in bank strategy, liquidity management, management reporting, the yield curve and asset liability management"-- Provided by publisher.

Contents:

Cover

Title Page

Copyright Pages

Contents

Foreword

Neal Ardley

Sharon Bowles

Henrique Fragelli

Oldrich Masek III

Jason Oakley

Helen Sachdev

Preface

Acknowledgements

Preface to the First Edition

About the Author

PART I Banking, Bank Customer Business and Regulation

Chapter 1 Banking, Bank Business and Financial Statements1

An Introduction to Banking

Bank Business Model

Banking Business And Capital

Bank Products and Net Interest Margin Management

Financial Statements and Ratios

The Money Markets

Loan Valuation

Risk Exposures in Banking

Chapter Summary

Appendix 1.1 Summary Overview of Bank Product Line

Appendix 1.2 Overnight Reference Rates (RFR)16

References and Further Reading

Chapter 2 Ethics, Conduct and Customer Service

A Bank's Customers

Anti-Money Laundering and Know Your Customer

Ethics and Customer Service

Ethics and Conduct

Ethics, Conduct and Reputation Risk

Chapter 3 Bank Regulatory Capital and the "Basel Rules"1

Bank Regulatory Capital Requirements

Macroprudential Regulation

Basel I

Basel II

Basel III

The 2017 Basel III Reforms ("Basel IV")

From 2017 to the Future

Cryptoassets

Climate Change Related Financial Risks

Appendix 3

References

PART II Bank Asset and Liability Management

Chapter 4 The Yield Curve

The Yield Curve

Importance of The Yield Curve

The Money Market and Capital Market Yield Curve

Types of Yield Curve

Analysing and Interpreting the Yield Curve

Further Views on the Yield Curve

Formal Policy for Setting the Bank's Internal Funding Curve

Constructing The Bank Internal Funding Curve

Yield Curve Building from Market Rates

References and Further Reading.

Chapter 5 Asset-Liability Management I

Origins of Bank ALM

Basic Concept Of ALM

Liquidity Risk

Managing Liquidity: Baseline Principles

Interest-Rate Risk and Source

The ALM Desk

Template ALM Policy for a Commercial Bank

Middle-Office Treasury Procedure and ALM Practice11

Strategic ALM

The Concept of ALM Optimisation13

ALM and Negative Interest Rates

Appendix 5.1

Chapter 6 Balance Sheet Management: Money Markets, FX, Trading and Hedging, and Securitisation

Money Market Instruments and Foreign Exchange

Money Markets Rates

Foreign Exchange Markets1

FX Balance Sheet Hedging

Trading Approach

Interest-Rate Hedging Tools

Interest-Rate Swap Hedging Applications

Hedging Interest-Rate Risk Using Interest-Rate Swaps

Overnight Index Interest-Rate Swaps

Interest-Rate Risk Exposure and Option Hedging

Hedging using Bond Futures Contracts

Balance Sheet Management and Securitisation10

Treasury Desk Investment Guidelines Template

Chapter 7 Managing Interest-Rate Risk in the Banking Book (IRRBB)1

Interest-Rate Risk in the Banking Book

The Interest-Rate Gap Report

NII Sensitivity

Economic Value of Equity (Eve) Sensitivity

The Management of Gap Risk

The Management of Basis and Optionality Risks

The Management of Prepayment Risk

The Management of Pipeline Risk

The Management of Cap and Floor Risk

The ALCO Report for IRRBB

Credit Spread Risk in The Banking Book (CSRBB)

BCBS386: The Basel Committee Principlesfor Interest- Raterisk in the Banking Book

A Final Word on IRRBB

Further Reading

Chapter 8 Bank Treasury Operating Model1

Locating the ALM Function

Treasury Operating Model

Group Treasury Operating Model

Chapter Summary.

References and Further Reading

Chapter 9 ALCO Governance Framework and Terms of Reference

Traditional Alco Model and Policy

The Modern-Day ALCO

ALCO Reporting

Chapter 10 ALM Sundries: Asset Encumbrance, Hedge Accounting, IFRS 9 and EIR1

Asset Encumbrance

Hedge Accounting4

High Level Principles of IFRS 9 and EIR

PART III Bank Liquidity Risk Management

Chapter 11 Principles of Bank Liquidity Management

Bank Liquidity

Sustainable Banking: Ten Principles of Bank Liquidity Risk Management

The Bank Liquidity Policy Statement

Policy on Intra-Group Lending

The Liquid Asset Buffer5

Liquidity Management And Collateral

The Contingency Funding Plan

Chapter 12 Liquidity Risk Metrics1

Two Key Liquidity Metrics

Basel Liquidity Metrics

Chapter 13 Liquidity Risk Reporting

Liquidity Risk Reporting

Regulator Reporting

Chapter 14 Bank Funds Transfer Pricing1

The Concept of Funds Transfer Pricing

The Development of Funds Transfer Pricing

Pricing Liquidity

Funds Transfer Pricing Policy Template

PART IV Bank Strategy and Governance

Chapter 15 Bank Strategy IInputs and Setting

The Strategic Planning Process

Strategy and the Bank Business Model

Evaluation of the Strategic Plan

Conclusion

Chapter 16 Bank Strategy IICapital and Funding Management

Textbook Treatment of Bank Capital

Capital Management Policy

Benchmarking with the Market

An Integrated Capital And Liquidity Management Strategy

Capital Management: Capital Instruments

Capital Management Strategy.

Chapter Summary

Chapter 17 Principles of Corporate Governance1

Effective Bank Corporate Governance: Conclusions from the 2008 Bank Crash

Market Observations

Policy Recommendations

Management Structure

Governance and Sustainable Banking

PART V Principles of Risk Management and Regulation

Chapter 18 The Risk Management Framework

Macro-Level Risk Management and Strategy

Risk Management Framework Template

Example of Board-Level Ras

A Final Word

Reference

Chapter 19 Credit Risk Assessment and Reporting Principles

Drivers of Credit Risk

Portfolio Risk Reporting

Risk Policy

Product Line Risk Reporting

Business Line Reporting

Chapter 20 Stress Testing, ICAAP, ILAAP and Reverse Stress Testing1

Stress Testing Policy

Sample Stress Test Results

Scenario Analysis: Economic Downturn Stress Test Report

Liquidity Stress Test Reports

Internal Capital Adequacy Assessment Process (ICAAP)

Internal Liquidity Adequacy Assessment (ILAAP)

Reverse Stress Testing: Definition, Approach and Relevance

Chapter 21 Recovery Planning and Resolution Planning

Recovery Planning and Resolution Planning1

Chapter 22 Sustainable Banking and Climate Change Risk Management

Sustainable Banking and Green Banking

Climate Change Risk Management

Chapter 23 Case Studies: Analysis, Problem Solving and Decision Making

Coherent Advice and Problem Solving: Case Studies

Appendix 23.1

Chapter 24 Everything Changes, and Nothing Changes: Excerpts from a Timeless Work1

Core Principles of Banking

The Balance Sheet is Everything.

Reputation as a Safe Store of Value

Interest Rate

The High Quality Liquid Assets Buffer (HQLA)

The Original Capital Conservation Buffer

Corporate Governance Standards

The Basel Oxborough Guidelines

PART VI Guide to the Companion Website

Chapter 25 Applications Software, Policy Templates and Spreadsheet Models

Chapter Files

Afterword

List of Terms andtheir Abbreviations

Index

EULA.

Notes:

Description based on print version record.

Includes index.

Other Format:

Print version: Choudhry, Moorad The Principles of Banking

ISBN:

9781119755685

1119755689

9781119755708

1119755700

OCLC:

1336594315