The growth of financial intermediation research has yielded a host of questions that have pushed "design" issues to the fore even as the boundary between financial intermediation and corporate finance has blurred. This volume presents review articles on six major topics that are connected by information-theoretic tools and characterized by valuable perspectives and important questions for future research. Touching upon a wide range of issues pertaining to the designs of securities, institutions, trading mechanisms and markets, industry structure, and regulation, this volume will encourage bold new efforts to shape financial intermediaries in the future.
* Original review articles offer valuable perspectives on research issues appearing in top journals
* Twenty articles are grouped by six major topics, together defining the leading research edge of financial intermediation
* Corporate finance researchers will find affinities in the tools, methods, and conclusions featured in these articles

I taught Money & Banking and International Finance several times, and I converted my lecture notes into a textbook. Consequently, instructors can use this textbook for courses in Money & Banking, or International Finance or some hybrid in between them. Furthermore, financial analysts and economists could refer to this book as a study guide because this book contains concise information, and all facts and analysis are straight to the point, explaining how governments and central banks influence the exchange rates, the interest rates, and currency flows. The Financial Crisis severely impacted the world's financial markets that are still felt in 2013. I included many examples from the 2008 Financial Crisis, when many U.S. banks and financial institutions teetered on bankruptcy. Unfortunately, the financial crisis has not ended, and it might continue affecting the world's economies and financial markets for some time.

Reverse stress testing was introduced in risk management as a regulatory tool for financial institutions more than a decade ago. The recent Covid-19 crisis illustrates its relevance and highlights the need for a systematic re-thinking of tail risks in the banking sector. This book addresses the need for practical guidance describing the entire reverse stress testing process. Reverse Stress Testing in Banking features contributions from a diverse range of established practitioners and academics. Organized in six parts, the book presents a series of contributions providing an in-depth understanding of: Regulatory requirements and ways to address them Quantitative and qualitative approaches to apply reverse stress testing at different levels - from investment portfolios and individual banks to the entire banking system The use of artificial intelligence, machine learning and quantum computing to gain insights into and address banks' structural weaknesses Opportunities to co-integrate reverse stress testing with recovery and resolution planning Governance and processes for board members and C-suite executives Readers will benefit from the case studies, use cases from practitioners, discussion questions, recommendations and innovative practices provided in this insightful and pioneering book.

This book explains in simple language why the financial system crashed. It provides a quick course on the function of banks and financial markets, and it explains the meanings of words used by journalists and politicians when they talk about the crisis. It relates how our government, believing that what was good for Wall Street was good for Main Street, created conditions for a perfect storm. It shows what happens when governments fail to regulate the tendency of people to take risks with other people's money that they would never take with their own money. It describes how the attempts of banks to spread the risk of their irresponsible activities only made things worse. It examines our government's response to the crisis, assesses the damage, and suggests ways of fixing the financial system.

While the highly technical measurement techniques and methodologies of Value at Risk have attracted huge interest, much less attention has been focused on how Value at Risk and the risk-adjusted performance measures such as RAROC or economic profit/EVA . can be effectively used to improve a bank s decision making processes. Academic books are typically concerned primarily with measurement techniques, and devote only a small section to describing the applications, usually without discussing the problems that changing organizational processes in banks may have on business units behaviour. Practitioners books are often based on a single experience, presenting the approach that has been pursued by a single bank, but often do not adequately evaluate that approach. In actual practice, the choice of how to use Value at Risk and risk-adjusted performance measures has no single optimal solution, but requires effective decision making that can identify the solution that is consistent with the bank s style of management and coordination mechanisms, and often with characteristics of individual business units as well. In this book, Francesco Saita of Bocconi University argues that even though risk measurement techniques have greatly improved in recent years for market, credit and now also operational risk, capital management and capital allocation decisions are far from becoming purely technical and mechanical. On one hand, decisions about capital management must consider handling different capital constraints (e.g. regulatory vs. economic capital ) and face remarkable difficulties in providing a measure of aggregated ] Value at Risk (i.e. a measure that considers the overall value at risk of the bank after diversification across risk types). On the other hand, the aim of using capital more efficiently through capital allocation cannot be achieved only through a sort of centralized asset allocation process, but rather by designing a Value at Risk limit system and a risk-adjusted performance measurement system that are designed to provide the right incentives to individual business units. This connection between sophisticated and cutting edge risk measurement techniques and practical bank decision making about capital management and capital allocation make this book unique and provide readers with a depth of academic and theoretical expertise combined with practical and real-world understanding of bank structure, organizational constraints, and decisionmaking processes.
*Contains concise, expert analysis of the latest technical VaR measures but without the highly mathematical component of other books
*Discusses practical applications of these measures in the real world of banking, focusing on effective decision making for capital management and allocation
*Author is based at Bocconi University in Milan, Italy, one of the foremost institutions for banking in Europe"

The financial crisis, which originated in developed country financial markets, quickly spread to developing countries. Governments and central banksthough taking many and costly measures were powerless to stop the global economic meltdown, as economies across the globe went into recession. The depth of the financial crisis means that the world economy is in unchartered territory. How do we restore robust growth and prevent another crisis? This book aims to systematically understand current major problems in the financial system, its governance, and in its links to global economic imbalances. It explains how both market actors and regulators behavior, and the prevailing ideology of extreme financial liberalization and deregulation, contributed to the financial crisis. This highly topical book focuses on the transparency and regulatory measures that are necessary to restore confidence in the financial system, to ensure that the financial system performs the roles that it should perform within both developing and developed countries, and to make a recurrence less likely. The book also describes reforms in the global financial architecture that might make the global financial system more stable and more equitable. The book presents sometimes radical, but specific, pragmatic, and politically feasible proposals to try to ensure a more stable, equitable, and growing world economy. Contributions come from both developed and developing countries and are written by leading authorities in their field, including senior nationalas well as internationalpolicy makers, practitioners from the private sector, and leading academics.

The financial crisis shows that the banking industry requires a transformation, as its business model and practices are no longer sustainable. Even so, such transformation cannot be made without "Clearing the Bull"-moving beyond old and tired orthodoxies in order to properly diagnose the problem.

Drawing on more than twenty years of experience in banking, author Jonathan Ledwidge shows how the financial crisis exposed the industry's poor system of values, leaving it mired in conflict with its human environment. Specifically, this includes how poor leadership, virtually unmanageable organizations, dysfunctional suppliers, infuriated customers, alienated employees, and dissatisfied communities all arise from the inability of banks to understand that values are more important than valuations.

As a result there is now a total disconnect between banks and their human environment. That disconnect cannot be fully addressed by conventional solutions involving more regulations, more governance, and more controls. Banks have a very human problem, and thus by definition what they require is a human transformation.

"Clearing the Bull" provides both a clear diagnosis as well as a detailed and comprehensive roadmap for the banking industry's human transformation-and while doing so it remains totally engaging and accessible to bankers and non-bankers alike.

Central banking independence is a crucial factor for sustainable economic development of multiple countries. The multiple components for such systems, however, makes it difficult to evaluate how the success of such a system may be determined. Monetary Policies and Independence of the Central Banks in E7 Countries is an essential reference source that evaluates the effectiveness of monetary policies and the independence of central banks to contribute to economic development within seven emerging economies (E7): Brazil, China, India, Indonesia, Mexico, Russia, and Turkey. Featuring research on topics such as global economics, independent banking, and foreign investing, this book is ideally designed for financial analysts, economists, government officials, policymakers, researchers, academicians, industry professionals, and students seeking coverage on improved econometric methods for effective financial systems.

The Economist magazine recently called him "a Robin Hood of the law": American lawyer LOUIS DEMBITZ BRANDEIS (1856-1941) developed the concept of the "right to privacy" in an 1890 law journal article, and-in this classic 1914 work-he denounced investment banking, corporatism, monopolies, and the consolidation of American wealth in the hands of a privileged few. In this collection of essays first published the year before in Harper's Weekly, Brandeis championed the progressive economic ideals of Woodrow Wilson's "New Freedom," explained how entrepreneurial efforts and small businesses were being stifled and innovation and competition smothered in the fiscal environment he saw, and offered suggestions for reversing the trend. Hugely influential at the time, Other People's Money and How The Bankers Use It may have contributed to Brandeis's ascension to the United States Supreme Court Justice in 1916 (he would serve until 1939). Today, it serves another purpose: to remind us how the great experiment of American capitalism went astray... again, even in the wake of this powerful and important warning about the same dangers a century ago.

An analysis of the major securities, derivatives and money markets from an operations point of view, 'Understanding the Markets' takes the reader through the major features and characteristics of the markets and the products. The relationship between the trading and dealing functions and the operations functions is examined and the issues discussed.
This book looks at the financial markets from the viewpoint of the person working in the operations functions that support the trading, dealing and investment processes, and as such is essential reading in order to fully understand the industry - an industry which has gone, and is still going through, much change.
As the markets undergo change so too do the administration, clearing and settlement functions, as the clearing houses, securities depositories and custodians merge and diversify. This is going to impact on the operations teams that support the trading, sales and retail business. A failure to be aware of and to understand the impact of changes in the markets will create massive problems, greater risk and ultimately financial losses. And yet the sheer size and diversity of the global markets, together with the rapid pace of change and expansion, and the increasing volume of transactions needing to be processed, presents a massive challenge to operations teams and managers.
Knowing how the markets work and what impacts on the operations team is crucial for managers and supervisors. In this book the author provides a full explanation of the markets and their impact in operations terms. So if you are about to embark on a career in operations 'Understanding the Markets' is essential reading. Alternatively, if you are planning a career as a dealer it will prove very useful in explaining the process that occurs after you have traded.
The definitive series of professional references for those finance professionals concerned with "Back office" or operations management unique to this industry.Presents concise references on the essential management functions such as technology, client services, and risk management for financial operations management professionals.A comprehensive resource from a leading financial management consultant for global banks and institutions.

This book presents an eclectic mix of interesting new areas in the domain of economics, management and sustainability. Written by leading experts, it provides valuable food for thought, with essays introducing new lines of research and empirical research papers offering sound research methodology. The book not only provides answers, but also raises numerous interesting questions concerning the areas covered to whet readers' appetites to learn more. Professor Anup Sinha is a respected teacher and is a great mind with wide-ranging academic interests spanning from economics and sustainability to management. As well as in various other places in India and the US, he has taught at the Indian Institute of Management Calcutta and Presidency College (now a University) Calcutta for almost three decades. To commemorate his contributions, this festschrift presents a collection of essays that are broadly subdivided into four sections: Economic Development; Vulnerabilities and Inclusive Growth; Sustainability and Corporate Governance; and Innovation and Management.

Although little noticed, the face of central banking has changed significantly over the past ten to fifteen years, says the author of this enlightening book. Alan S. Blinder, a former vice chairman of the Federal Reserve System and member of President Clinton's Council of Economic Advisers, shows that the changes, though quiet, have been sufficiently profound to constitute a revolution in central banking. Blinder considers three of the most significant aspects of the revolution. The first is the shift toward transparency: whereas central bankers once believed in secrecy and even mystery, greater openness is now considered a virtue. The second is the transition from monetary policy decisions made by single individuals to decisions made by committees. The third change is a profoundly different attitude toward the markets, from that of stern schoolmarm to one of listener. With keenness and balance, the author examines the origins of these changes and their pros and cons.

This is an examination of the various technical and organisational elements that impact services management, business management, risk management, and customer relationship management.

Environmental issues have never been so high on the agenda of governments and companies around the world. From being seen as a fringe discipline, environmental risk management has established its central importance for the future not only of the environment itself but also of the individual organisation. Until now, however, there has been no book devoted to the implications of environmental risk for banks and other financial institutions involved in corporate lending. Phil Case's timely book provides a much-needed blueprint for the management of environmental risk in this crucial area and should be essential reading for all those involved in corporate lending internationally.

National development banks (NDBs) have transformed from outdated relics of national industrial policy to central pillars of the European Union's economic project. This trend, which accelerated after the Financial Crisis of 2007, has led to a proliferation of NDBs with an expanded size and scope. However, it is surprising that the EU - which has championed market-oriented governance and strict competition policy - has actually advocated for an expansion of NDBs. This book therefore asks, Why has the EU supported an increased role for NDBs, and how can we understand the dynamics between NDBs and European incentives and constraints? To answer these questions, the contributing authors analyze the formation and evolution of a field of development banking within the EU, identifying a new field around an innovative conceptualization of state-backed financing for the purposes of policy implementation. Yet rather than focusing solely on national development banks, the authors instead broaden the focus to the entire ecosystem of the field of development banking, which includes political institutions (both in Brussels and in the member states), financing vehicles (such as the Juncker Plan), regulatory bodies (Directorate-General for Competition, Directorate-General for Economic and Financial Affairs), and commercial actors. Seven in-depth case studies on European NDBs, along with three chapters on European-level actors, detail this field of development banking, and answer the questions of when, where, and how development banking occurs within the EU.

This first volume of the Handbook of Asset and Liability Management presents the theories and methods supporting models that align a firm's operations and tactics with its uncertain environment. Detailing the symbiosis between optimization tools and financial decision-making, its original articles cover term and volatility structures, interest rates, risk-return analysis, dynamic asset allocation strategies in discrete and continuous time, the use of stochastic programming models, bond portfolio management, and the Kelly capital growth theory and practice. They effectively set the scene for Volume Two by showing how the management of risky assets and uncertain liabilities within an integrated, coherent framework remains the core problem for both financial institutions and other business enterprises as well.
*Each volume presents an accurate survey of a sub-field of finance
*Fills a substantial gap in this field
*Broad in scope

This book provides an up-to-date overview of the development of the German financial system, with a particular focus on financialization and the financial crisis, topics that have increasingly gained attention since the crisis and the discussion on the secular stagnation started. The authors of the book-economists who have conducted extensive research in this area-offer a perspective on the financial system in the context of its importance for the overall economic system. The book not only provides detailed insights into Germany's financial system; it also takes a broader perspective on finance and connects it with current macroeconomic developments in Germany.

Modern bank insurance is traced to its roots in The Chinese Cornerstone of Modern Banking: The Canton Guaranty System and the Origins of Bank Deposit Insurance 1780-1933. Frederic Delano Grant, Jr. provides new understandings of the Canton System, collective responsibility for debt at Canton, and the history of deposit insurance. The Canton Guaranty System inspired radical reform in New York in 1829 - the ancestor of all modern deposit insurance. Yet it was never the success imagined, and soon failed. In the Opium War, the Chinese government as implicit guarantor was forced to pay its debts in full on 23 July 1843. The afflictions of the Chinese system, including moral hazard, too big to fail, and unenforced laws, remain familiar today.