MANAGING FINANCIAL INSTITUTIONS

This book takes a novel approach to solving a financial manager's problems by applying a valuation focus to the firm's risk management decisions. Rather than concentrating solely on defining and measuring a bank's risks, our book goes a step further by explicitly considering how these risks can impact the market value of the bank from a shareholder's perspective. The book uses an integrated valuation framework which quantifies the costs and benefits of how a bank should manage its main risks associated with key functions such as lending, investing, financing, and liquidity provision. The book's hands-on approach to learning also incorporates useful tools for student learning, such as helpful mnemonics, illustrative examples, and a spreadsheet which brings the concepts discussed in the book to life. It is a must-read for readers eager to improve their risk management skills.

Contents:

• Key Functions of Financial Institutions
• Overview of Valuation Models
• Introducing the Integrated Valuation Model
• Interest Rate Risk
• Market Risk
• Credit Risk
• Off Balance Sheet (OBS) Risk
• Liquidity Risk
• Operational Risk
• Regulatory Issues in Banking
• Systemic Risk
• Integrated Risk Management: Putting It All Together

Readership: Advanced undergraduate and graduate students attending courses in financial institutions and bank management, and industry practitioners related to the financial services industry, such as commercial bank managers, investment bankers, portfolio managers, and equity analysts.