Offering a historical analysis of management in banking from the Medici to present day, this book explores how banks can cause devastating financial crisis when they fail. Rather than labelling management as ‘good’ or ‘bad’, the author focuses on the concept of absent management, which can occur as a result of complexity. The complexity of banking, which intensified alongside the phenomenal growth of banks in the 20th and 21st centuries, resulted in banks that are mismanaged or, at times, even unmanaged. Drawing on business school case studies including Barings and Lehman Brothers, this book showcases how absent management in banking has caused crises, depressions and recessions, and how ultimately it will continue to do so.
The recent banking crisis has brought into question the business model used by most large banks. This collection of essays explores the success of ‘alternative banks’ – savings banks, cooperative banks and development banks, using case studies from around the world and discussion of both the historical and theoretical context of banking practices.
Addressing a need for innovative solutions to challenges facing organisations today, this book explores the concept of Knowledge Risk Management (KRM), outlining how this new approach can be implemented in the banking sector. The author proposes the first knowledge risk framework that is specific to cooperative banks, which aims to improve the accuracy of risk assessment procedures by combining a conventional risk management approach with knowledge management tools and techniques. Including empirical data taken from interviews with employees in the banking sector, this book provides banks with a valuable tool for tackling potentially damaging knowledge-related risks, making it an essential read for those researching risk management and banking.
The seminal guide to risk management, streamlined and updated Risk Management in Banking is a comprehensive reference for the risk management industry, covering all aspects of the field. Now in its fourth edition, this useful guide has been updated with the latest information on ALM, Basel 3, derivatives, liquidity analysis, market risk, structured products, credit risk, securitizations, and more. The new companion website features slides, worked examples, a solutions manual, and the new streamlined, modular approach allows readers to easily find the information they need. Coverage includes asset liability management, risk-based capital, value at risk, loan portfolio management, capital allocation, and other vital topics, concluding with an examination of the financial crisis through the utilisation of new views such as behavioural finance and nonlinearity of risk. Considered a seminal industry reference since the first edition's release, Risk Management in Banking has been streamlined for easy navigation and updated to reflect the changes in the field, while remaining comprehensive and detailed in approach and coverage. Students and professionals alike will appreciate the extended scope and expert guidance as they: Find all "need-to-know" risk management topics in a single text Discover the latest research and the new practices Understand all aspects of risk management and banking management See the recent crises – and the lessons learned – from a new perspective Risk management is becoming increasingly vital to the banking industry even as it grows more complex. New developments and advancing technology continue to push the field forward, and professionals need to stay up-to-date with in-depth information on the latest practices. Risk Management in Banking provides a comprehensive reference to the most current state of the industry, with complete information and expert guidance.
European economies have been plagued by successive crises, from the Global Financial Crisis (GFC) to the COVID-19 pandemic, through to the economic and geopolitical instability in Ukraine. These events, the uncertainty they generate combined with dynamic technological progress and significant sociocultural changes, have profoundly modified the character of modern finance. Understanding what happened, what mechanisms worked, and the reaction of the banking sector, bank customers, and policymakers require an in-depth and structured analysis. This book critically assesses the impact of these events, notably the COVID-19 pandemic, on the performance of the banking sector in Europe and serves as a compendium of knowledge on recent changes in European banking from two perspectives: firstly, European banking transformation, analyzing the process of what has already taken place, in particular, the GFC and COVID-19 crises; secondly, the challenges facing the operations and strategic management of European banks. It identifies specific areas of impact on the activity of commercial banks and the determining factors that will shape the economic and financial condition of banks and their customers – borrowers – in the future. Risk management, particularly credit risk, is a key focus of this volume. Each chapter, implicitly or explicitly, address a variety of questions that can help the reader to understand the complex nature of the transformation of the banking sector. The book provides a structured reference for those concerned with the impact of volatility on the business models of modern banks. As such, it will find a broad audience among students, academics, banking, financial, business, and industry professionals, policymakers, and market regulators.
A practical guide to the practices and procedures of effectively managing banking risks Managing Risks in Commercial and Retail Banking takes an in-depth, logical look at dealing with all aspects of risk management within the banking sector. It presents complex processes in a simplified way by providing real-life situations and examples. The book examines all dimensions of the risks that banks face—both the financial risks—credit, market, and operational—and the non-financial risks—money laundering, information technology, business strategy, legal, and reputational. Focusing on methods and models for identifying, measuring, monitoring, and controlling risks, it provides practical advice backed up by solid theories, without resorting to the use of complicated mathematical and statistical formulas. Author Amalendu Ghosh exposes topics that are usually absent in books on managing banking risk—such as design of control framework, risk management architecture, credit risk rating, risk-based loan pricing, portfolio analysis, business continuity planning, and corporate governance. Author has extensive experience with a variety of major banks and institutions worldwide and brings a fresh perspective in the wake of the global finance crisis Presents a novel approach using models of the credit risk rating of different types of borrowers, the methodology for assigning weights for deriving the rating, and the scoring process Covers the essentials of corporate governance and options for credit risk assessment in line with the recommendations made in the New Basel Capital Accord Explains the methodology of risk-based internal audit, including techniques to enable bank branches to switch over from the old transaction-based audit methods With its logical sequence of the aspects of risk management, the book's layout is ideal for presentations, making it a handy tool for risk management training
Looking at the current scenario within Indian banking, one finds many a slip between cup and lip. After more than two decades of licensing ambitious private banks and five decades of government ownership and control of large banks, more than 100 million households now find themselves left outside of banking services. This book, based on published data and the authors 36 years of operational experience working for a commercial bank, the central bank and the government, attempts to find solutions to such problems and a direction for the future of Indian banking. The authors unique professional career is complemented by his ability to recall lessons learned while working at variousadministrative levels and in diverse locations both in India and abroad, which has allowed him to write this one-of-a-kind book. Divided into three sections, the book explores the legacy of Indian banking, the changes it has undergone and its processes, as well as discussing existing uncertainties, non-existent competition and significant legislation that shapesbanking in Indiatoday. It also offers an analysis of Indias top ten banks in terms of assets, along with two case studies which provide the insight necessary to design a future model for Indian banking.
This paper outlines the recent progress in developing Islamic financial instruments for the management of monetary policy and public borrowing requirements and provides details on new instruments currently being developed in the Islamic Republic of Iran and Sudan. The paper also touches on the institutional arrangements for interbank market operations and the design of effective central bank credit facilities that are needed under Islamic banking to support the development and operation of these new instruments.
This fascinating book focuses on Kyoto high-tech companies that have captured leading market share with globally preeminent technologies and yet have been able to maintain their robust profitability even under Japan's current prolonged recession.The book aims to uncover the secrets of success behind such companies as Kyocera Corp., Omron Corp., Murata Manufacturing Co., Rohm Co. and Horiba Ltd. and their management systems, generally termed 'the Kyoto Model'.The unique features of the model are detailed: the history and founding of these high-tech companies, their management attitude giving priority to corporate philosophies, their organizational management, the emphasis they put on R&D management and production technologies, their personnel management, and finally, their philanthropic activities.The Kyoto Model, with its high technology-oriented management system, is a useful case study and tool for Japan's R&D ventures.
