Understanding the Banking Business: Through the Financial Statements

Introduces the basic banking business by defining the meaning and use of the items on the balance sheet and income statement. It describes the relationship of income and expense items to their corresponding balance sheet items. Discusses asset and liability management, GAP, duration, and ratio analysis. Updates board members, new officers, new employees and management trainees on the principles of banking. Defines accrual accounting, pledged securities, tax equivalence, footings, allowance for loan losses, liquidity ratios, interest rate risk, core deposits, credit risk, money markets, off-balance sheet items, yield curve, discount accretion, and many others.