The author explains the original principles of banking, including the need for sound lending policy, capital management and liquidity risk management, and why these need to be maintained robustly to ensure the industry avoids another banking crisis during the next economic recession. Readers can access a wide range of downloadable ancillary materials, including policy templates, spreadsheet models, risk metric dashboards, and PowerPoint slides.
This Second Edition offers:
Updates to reflect new regulations published since the last edition, including Basel III Final Form and its constituent elements of The Fundamental Review of the Trading Book, Interest Rate Risk in the Banking Book, and Recovery and Resolution PlanningNew chapters in market risk management, foreign exchange risk management, and interest rate risk, as well as credit risk policy and management, and capital and liquidity adequacy stress testing regulationsNew material covering the impact of COVID-19 on banks, risk management, and balance sheet management and what this implied for the discipline of risk management going forwardA recommended approach to bank asset-liability management good-practice, to enable a bank to deliver an optimised balance sheet for all stakeholders' benefit
Perfect for bank practitioners, including managers in retail and commercial banking, ALCO members, treasury professionals, all C-suite executives and board non-executive directors, The Principles of Banking is an indispensable resource for all professionals and students seeking an authoritative and practical guide to the foundations of modern banking and good banking practice.