Commercial Bank Financial Management (6th Edition)

Noting that banks operate in the financial services industry, rather than the more narrowly defined banking industry, this textbook is aimed at business students who wish to join the industry and maximize shareholder value. Because of the declining franchise value of the traditional business of funding loans with deposits, the text emphasizes other ways to maximize profits, including the development of tools for the management of risk, including off balance sheet techniques. After a section that overviews the broad contours of the financial service industry, chapters address bank financial statements, risk, and valuation; strategic planning, risk management, asset-liability management, and capital adequacy; credit risk; the liquidity, operating, and foreign-exchange risk of banking and securitization; and the roles of regulation, deposit insurance, and ethics. Annotation c. Book News, Inc., Portland, OR (booknews.com)