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Product details:
- ISBN-10 ‏ : ‎ 1133494684
- ISBN-13 ‏ : ‎ 978-1133494683
- Author: Timothy W. Koch; S. Scott MacDonald
Closely examine the impact of today’s changing, competitive environment on commercial banks and banking services, as well as the entire financial services industry, with Koch/MacDonald’s BANK MANAGEMENT, 8E. This new edition reflects the latest changes and developments, from complete regulatory updates to details of the many programs evolving amidst today’s financial crises. The book’s unique approach to understanding bank management focuses on decision-making in today’s financial world. Whether you are a practicing or future professional, the book clearly demonstrates how certain factors influence credit, investment, funding, and pricing decisions. The book’s solid framework provides an appreciation and understanding of the trade-offs between return and risk. You gain a better understanding of the most important issues confronting financial and banking managers today as the book discusses basic financial models used to formulate decisions and analyzes the strengths and weaknesses of data analysis. With the help of this latest edition, you develop the logical thought processes needed to achieve strong financial and management results.
Table of contents:
- Ch 1: Banking and the Financial Services Industry
- Global Financial Crisis of 2007-2009
- How Do Banks Differ?
- Organizational Structure
- Financial Services Business Models
- Too Big to Fail Banks
- Different Channels for Delivering Banking Services
- Summary
- Questions
- Activities
- References
- Ch 2: Government Policies and Regulation
- Historical Bank Regulation
- Goals and Functions of Depository Institution Regulation
- Ensure Safety and Soundness and Provide an Efficient and Competitive System
- New Charters
- Shortcomings of Restrictive Bank Regulation
- Maintaining Monetary Stability and the Integrity of the Payments System
- Efficient and Competitive Financial System
- Too Big to Fail
- Summary
- Questions
- Activities
- References
- Ch 3: Analyzing Bank Performance
- Commercial Bank Financial Statements
- The Relationship between the Balance Sheet and Income Statement
- The Return on Equity Model
- Managing Risk and Returns
- Financial Statement Manipulation
- Summary
- Questions
- Problems
- References
- Appendix
- Ch 4: Managing Noninterest Income and Noninterest Expense
- Noninterest Income
- Noninterest Expense
- Which Lines of Business and Customers are Profitable?
- Summary
- Questions
- Activity
- References
- Ch 5: The Performance of Nontraditional Banking Companies
- The Disappearance of Large Investment Banks
- Goldman Sachs Group, Inc. and Goldman Sachs Bank USA
- The Financial Performance of Mutual of Omaha Bank
- The Financial Performance of BMW Financial Services and BMW Bank of North America
- Summary
- Questions
- Activities
- References
- Ch 6: Pricing Fixed-Income Securities
- The Mathematics of Interest Rates
- Simple versus Compound Interest
- The Relationship between Interest Rates and Option-Free Bond Prices
- Duration and Price Volatility
- Recent Innovations in the Valuation of Fixed-Income Securities and Total Return Analysis
- Money Market Yields
- Summary
- Questions
- Activities
- References
- Ch 7: Managing Interest Rate Risk: GAP and Earnings Sensitivity
- Measuring Interest Rate Risk with GAP
- Earnings Sensitivity Analysis
- Income Statement GAP
- Managing the GAP and Earnings Sensitivity Risk
- Summary
- Questions
- Activities
- References
- Ch 8: Managing Interest Rate Risk: Economic Value of Equity
- Measuring Interest Rate Risk with Duration Gap
- Economic Value of Equity Sensitivity Analysis
- Earnings Sensitivity Analysis versus EVE Sensitivity Analysis: Which Model is Better?
- A Critique of Strategies for Managing Earnings and Economic Value of Equity Sensitivity
- Yield Curve Strategies
- Summary
- Questions
- Activity
- References
- Ch 9: Using Derivatives to Manage Interest Rate Risk
- Characteristics of Financial Futures
- Speculation versus Hedging
- Microhedging Applications
- Macrohedging Applications
- Using Forward Rate Agreements to Manage Rate Risk
- Basic Interest Rate Swaps as a Risk Management Tool
- Interest Rate Caps and Floors
- Summary
- Questions
- Activities
- References
- Ch 10: Funding the Bank
- The Relationship between Liquidity Requirements, Cash, and Funding Sources
- Characteristics of Retail-Type Deposits
- Characteristics of Large Wholesale Liabilities
- Electronic Money
- Check 21
- Measuring the Cost of Funds
- The Average Historical Cost of Funds
- Funding Sources and Banking Risks
- Summary
- Questions
- Problems
- References
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