If your institution's like most and your gap position (the difference between the repricing periods of a bank's assets and liabilities) is the only interest rate risk you currently measure - then you should be warned: the regulators are coming. New banking regulations require that you keep a close eye not only on gap, but also on other key risks, less obvious on the balance sheet, such as basis risk and imbedded options. Simple gap analysis just isn't enough anymore. And that's just the beginning of what regulators are now asking for. But - even though the array of available sophisticated simulation models and financial tools is bewildering - you needn't worry thanks to this remarkable how-to guide from two leading authorities of the asset/liability management world. Step by step, Bitner and Goddard take you through a concise history of asset/liability management science since the early '80s to help orient newcomers to the field; comprehensive guide to jump-starting an asset/liability management program, including organizing an A/L management committee, writing an interest rate management policy (that states your interest rate risk exposure parameters), and selecting the best risk modeling system; comprehensive arsenal of techniques for identifying, measuring, and managing interest rate risk, including critical forecasting and self-analysis methods that ensure your institution stays on track; total framework for integrating your asset/liability management processes and putting them into action; and helpful section of advice and insights from leading A/L management practitioners. With a record number of failed or failing banks and thrifts on their hands, the regulator's vigilance hasnever been greater. That's why your financial institution needs to identify and measure the impact of a broad range of interest rate movements on its earnings and net value - and why you need Successful Bank Asset/Liability Management.

This book examines the local and global political and institutional processes that have led to the strengthening of the Israeli central bank within the context of the now predominant neoliberal regime. Using Israel as a case study to identify broader patterns around the world, the authors examine the strengthening of central banks as a key dimension of the institutionalisation of the global regime. Drawing on an in-depth analysis of the political economy of the Israeli central bank since the mid-1980s, the authors show how the Bank of Israel mobilized global logics in order to strengthen its position vis-a-vis competing actors, especially the Ministry of Finance, and to promote the institutionalisation of the neoliberal regime. Employing a conflict-centered theoretical perspective, the authors elucidate the character of this institutional transformation and the mechanisms that were involved. Chapters examine the different phases of the process of central bank strengthening, focusing on the actors involved, the interactions between them, and the political strategies they employed, and analyse the consequences of the process for the shift in macro-economic management and in the mode of state involvement in the economy. Addressing the political and institutional processes that have led to the fundamental transformation of Israeli political economy, this book is a valuable addition to the existing literature on the Israeli banking system, political economy and globalisation.

First published in 1999, Kostis in this book traces the influences Western modern banking systems in Balkan states and the economic development of these countries. The contributors of this book consider a wide arrange of approaches in relation to issues of western-European influence in Balkan countries with the aim to create a further discourse in this subject.

In December 1991, the U.S. Congress enacted and President George Bush signed the Federal Deposit Insurance Corporation Improvement Act (FDICIA). The Act was motivated by the severity of the U.S. banking and thrift crisis of the 1980s and represented the most important banking legislation since the Banking (Glass-Steagall) Act, which was enacted in 1933 at the depth of the previous most severe banking crisis in U.S. history. Between 1980 and 1991, some 1,500 commercial and savings banks, representing 10 percent of the industry in 1980, failed and more than 1,000 savings and loan associations, representing 25 percent of the industry, failed. In addition, delays in resolving the failures helped to increase the cost beyond the resources of the then Federal Savings and Loan Insurance Corporation (FSLIC) and required the taxpayers to pay some $150 billion To insured depositors at these institutions. The large number and high cost of the failures were in large measure attributable to serious flaws in the extant government-sponsored deposit insurance program that encouraged insured institutions to assume excessive credit and interest rate risks and bank regulators to delay imposing corrective sanctions on troubled institutions and resolving economically insolvent institutions.

FDICIA attempted to correct these flaws by reforming the deposit insurance structure through requiring regulatory prompt corrective action (PCA) and least cost resolution (LCR). PCA mandated a series of both discretionary and mandatory sanctions that the regulators first may and then must apply as an institutions's financial health progressively deteriorates as reflected in a number of capital-to-assetratios. These sanctions are intended to encourage the institutions to reverse their deterioration before it is too late. But if they fail to do so, PCA requires resolution of the institution before their book-value capital is fully depleted. This is intended to minimize any losses from failure.

The designed PCA sanctions are modelled after the actual sanctions that the private market typically imposes on troubled firms in uninsured industries and that are distorted in banking by the government-provided insurance. Thus, FDICIA attempts to supplement regulatory and supervisory discipline with stimulated market discipline.

Since its introduction in the United States in 1991, PCA has been explicitly or implicity adopted in word if not spirit in many developed and developing countries with greatly different banking and regulatory structures. How well has it worked or could it work? The papers also consider reinforcing or alternative prudential techniques. Thus, they add to our storehouse of knowledge on improving the performance of banking systems and should prove useful to researchers, practioners, and policy-makers both in evaluating extant regulatory structures and in designing new or modified structures. All the papers were presented by the authors and commented on by the discussants at invited sessions at the annual meeting of the Western Economic Association in Seattle, Washington in July 2002. Maia Pykina (Loyola University Chicago) provided assistance both in arranging the session programs and in preparing the papers for publications.

This book analyses the connections between the banking industry in Europe and the companies it finances. Ferretti specifically studies how these bonds have evolved over time and questions whether now is the time for a change in the relationship's dynamics. Chapters discuss the role of bank lending in firms' financing during the recent financial crisis, as well as issues in credit risk management. The discussion also examines regulatory requirements impacting banks and firms (Basel III) and how they intersect with banks' internal purposes. Moreover, the book explores how the financial crisis has impacted the relationship between banks and businesses, and seeks to identify the strengths and weaknesses inherent to it. Through this timely discussion, Ferretti looks to the future of the relationship between banks and non-financial organizations to see how they can be revitalised, adapted and reimagined in a post-crisis economy.

Leonard Seabrooke argues that they key to understanding 'change' in international finance in the last forty years rests with US structural power. He demonstrates for the reader how structural power draws from embedded state-societal relations and how the US promotion of 'direct financing' has encouraged Britain, Japan, and Germany to 'catch-up' to US-led innovations. In drawing considerably on multidisciplinary insight, the book will benefit all those who wish to understand more about 'change' in the international political economy.

Drawing on the history of modern finance, as well as the sociology of money and risk, this book examines how cultural understandings of finance have contributed to the increased capitalization of the UK financial system following the Global Financial Crisis. Providing both a geographically-inflected analysis and re-appraisal of the concept of performativity, it demonstrates that financial risk management has a spatiality that helps to inform understandings and imaginaries of the risks associated with money and finance. The book traces the development of understandings of risk at the Bank of England, with an analysis that spans some 1,000 reports, documents and speeches alongside elite interviews with past and present employees at the central bank. The author argues that the Bank has moved from a relatively broad-brush approach to the risks being managed in the financial sector, to a greater preoccupation with the understanding and mapping of the mobilization of financial risk. The study of financial practices from a critical social sciences and humanities perspective has grown rapidly since the Global Financial Crisis and this book will be of interest to multiple subject areas including IPE, economic geography, sociology of finance and critical security studies.

This comprehensive guide serves to illuminate the rise and development of FinTech in Sweden, with the Internet as the key underlying driver. The multiple case studies examine topics such as: the adoption of online banking in Sweden; the identification and classification of different FinTech categories; process innovation developments within the traditional banking industry; and the Venture Capital (VC) landscape in Sweden, as shown through interviews with VC representatives, mainly from Sweden but also from the US and Germany, as well as offering insight into the companies that are currently operating in the FinTech arena in Sweden. The authors address questions such as: How will the regulatory landscape shape the future of FinTech companies? What are the factors that will likely drive the adoption of FinTech services in the future? What is the future role of banks in the context of FinTech and digitalization? What are the policies and government initiatives that aim to support the FinTech ecosystem in Sweden? Complex concepts and ideas are rendered in an easily digestible yet thought-provoking way. The book was initiated by the IIS (the Internet Foundation in Sweden), an independent organization promoting the positive development of the Internet in the country. It is also responsible for the Internet's Swedish top-level domain .se, including the registration of domain names, and the administration and technical maintenance of the national domain name registry. The book illustrates how Sweden acts (or does not act) as a competitive player in the global FinTech arena, and is a vital addition to students and practitioners in the field.

This book proposes that organizational policies are what ensure the institutionalization and sustainability of futures thinking in organizations. It presents several case studies from corporations and other institutions that describe effective use of foresight methods and internal policies to respond to rapid change. The case studies address changing trends in technology, globalization and/or workforce diversity, and the impact on the economic and political well-being of the organization. The editors also develop an organizational capability maturity model for futures thinking as well as providing questions for discussion that promote critical review of each case chapter. This book will inform scholars and organizational leaders how best to utilize foresight methodologies and organizational policies to sustain successful management strategies within futures thinking organizations. Chapter 9 is available open access under a Creative Commons Attribution 4.0 International License via link.springer.com.

The 2008 global financial crisis, together with the experience of de-industrialization across Western Europe over the last three decades, has focussed attention on financial regulation and industrial policy. Industry and finance policies have largely been discussed separately, and this book argues that the two should be considered together, in both analysis and policy formulation that deals with critical questions of how finance has intervened in industrial restructuring and how it might better serve the real economy. Moreover, policy debates have paid relatively little attention to the heterogeneous economic structures and growth trajectories of European economies, and the interconnectedness and interdependencies of growth paths that present specific challenges to policy and highlight the need for cooperation across the region. This book brings together leading scholars and policy makers to contribute to policy debates in three ways. First, it includes current discussions of banking policy, regulation, and reform to reassert the need for financial institutions that will back up and finance an industrial policy to revive the European economy. Second, it reviews the role of industrial and investment policy in supporting innovation, creating jobs, and generating sustainable economic growth. Third, it advances alternative policy proposals aimed at generating sustainable economic growth and employment in Europe. Part I analyses the nature of growth, industrial, and economic restructuring in relation to finance in the lead up to the crisis, at regional, national, and sector levels. Part II presents alternative and progressive policy proposals for growth and employment in Europe in light of the analysis presented in Part I.

The Great Financial Crisis of 2007-2010 exposed the existence of significant imperfections in the financial regulatory framework that encouraged excessive risk-taking and increased system vulnerabilities. The resulting high cost of the crisis in terms of lost aggregate income and wealth, and increased unemployment has reinforced the need to improve financial stability within and across countries via changes in traditional microprudential regulation, as well as the introduction of new macroprudential regulations. Amongst the questions raised are:

Recent failures and rescues of large banks have resulted in colossal costs to society. In wake of such turmoil a new banking union must enable better supervision, pre-emptive coordinated action and taxpayer protection. While these aims are meritorious they will be difficult to achieve. This book explores the potential of a new banking union in Europe. This book brings together leading experts to analyse the challenges of banking in the European Union. While not all contributors agree, the constructive criticism provided in this book will help ensure that a new banking union will mature into a stable yet vibrant financial system that encourages the growth of economic activity and the efficient allocation of resources. This book will be of use to researchers interested in Banking, Monetary Economics and the European Union.

Mainstream economists explain the Federal Reserve's behavior over its one hundred years of existence as (usually failed) attempts to stabilize the economy on a non-inflationary growth path. The most important monetary event during those first one hundred years was the replacement of fixed exchange rates, based on a gold-exchange standard, with flexible exchange rates. In this book, Dickens explains how flexible exchange rates became necessary to accommodate the Federal Reserve's relentless efforts to prevent progressive social change. It is argued that the Federal Reserve is an institutionalized alliance of the large New York banks and the large regional banks. When these two groups of banks are united, they constitute an unassailable force in the class conflict. However, when the large regional banks are at loggerheads with the large New York banks over the proper role of bank clearinghouses during the populist period, along with the proper role of the Eurodollar market during the social democratic period, there is an opening for progressive social reforms. This book builds upon Hyman Minsky's financial instability hypothesis as well as the Marxian model constructed by Thomas Piketty. It follows Piketty's historical method of deepening our understanding of the current Neoliberal Era (1980-2014) of global financial capitalism by comparing and contrasting it with the first era of global financial capitalism-the Gilded Age (1880-1914). In contrast with Piketty, however, this book incorporates monetary factors, including monetary policy, into the set of determinants of the long-run rate of economic growth. This book is suitable for those who study political economy, banking as well as macroeconomics.

This book sheds new light on the role played by European banks in the economic colonization of much of the globe. Based on previously unused archival material, it examines the origins and development of imperial banking systems. Contributors utilize new developments and methodology in business history to explore a broad range of countries including Cuba, Brazil, Portugal, South Africa and Algeria. The central topic of interest in this book is the institutional history of central, issuing and rediscounting banks. While much attention has been paid to the British, Dutch and French banks and financial instituions, this book is unique in its focus on colonial and overseas banking. Using a range of case studies, this book highlights both the immense variety and cohesion that defined colonial banking practices. This book will be of interest to researchers concerned with international finance and banking and economic history.

With twenty-one years' experience in the investment bond business, Raymond uses his experience in this study to demonstrate the key issues related to state, county, municipal and district bonds through the use of the most recent data of the time. Originally published in 1923, this version was republished in 1936 to ensure that all figures and arguments were up-to-date. This title will be of interest to students of Business, Economics and Finance.

Wrap your head around the complicated world of investment banking with this understandable and comprehensive resource The celebrated authors of Investment Banking For Dummies, 2nd Edition have updated and modernized their best-selling book to bring readers an invaluable and accessible volume about the investment banking industry. Written in the straightforward and approachable tone the For Dummies series is known for the world over, authors Matthew Krantz and Robert Johnson have created an indispensable resource for students and professionals new to investment banking. The book covers all the crucial topics required to understand the fundamentals of the industry, including: Strategies for different types of risk management: market, credit, operating, reputation, legal, and funding The key investment banking operations: venture capital, buyouts, M&A, equity underwriting, debt, and more The relationship between leverages buyout funds, hedge funds, and corporate and institutional clients Investment Banking For Dummies, 2nd Edition offers, for the first time, a brand-new chapter devoted to cryptocurrencies, and new content on "unicorn" IPOs, including Uber, Lyft, and Airbnb.

Handbook of Blockchain, Digital Finance, and Inclusion, Volume 2: ChinaTech, Mobile Security, and Distributed Ledger emphasizes technological developments that introduce the future of finance. Descriptions of recent innovations lay the foundations for explorations of feasible solutions for banks and startups to grow. The combination of studies on blockchain technologies and applications, regional financial inclusion movements, advances in Chinese finance, and security issues delivers a grand perspective on both changing industries and lifestyles. Written for students and practitioners, it helps lead the way to future possibilities.

Handbook of Blockchain, Digital Finance, and Inclusion, Volume 1: Cryptocurrency, FinTech, InsurTech, and Regulation explores recent advances in digital banking and cryptocurrency, emphasizing mobile technology and evolving uses of cryptocurrencies as financial assets. Contributors go beyond summaries of standard models to describe new banking business models that will be sustainable and will likely dictate the future of finance. The volume not only emphasizes the financial opportunities made possible by digital banking, such as financial inclusion and impact investing, but it also looks at engineering theories and developments that encourage innovation. Its ability to illuminate present potential and future possibilities make it a unique contribution to the literature.

This critique of World Bank operations examines the effects of this organization on the societies in which it operates. Highly critical of the Bank's practices in its 50 years of operation, the author demonstrates how the Bank has become virtually unaccountable and a law unto itself. He describes how the Bank has supported oppressive regimes and loaned money to support large projects which have displaced local populations. He argues further that the Bank's current policies of structural adjustment are arresting the development of Third World countries.

Europe's sovereign debt crisis and the accompanying national bank crises in the European Union brought bank regulation and supervision to the top of the EU policy agenda. In a few short years, we have witnessed a 'great leap forward' for European integration marked by over a dozen pieces of EU legislation shaping the operation of banks, rules on bank capital, reconfigured supervisory agencies, and Banking Union. The significance of these measures lies however, in the fact that they constitute the most dramatic transfer of policy-making powers to the European level since the start of Economic and Monetary Union in 1999. This volume addresses the three main political battles behind the adoption of these new regulatory and supervisory policies. First, it examines divisions among states, both according to their domestic institutional structures, including distinct financial systems, as well as their creditor or debtor status in the crisis. Second, it studies the battle over national versus supranational jurisdiction. Third, it explores the conflictual process of policy learning and the activation of epistemic communities who claim competence to address the crisis. This book was originally published as a special issue of the journal West European Politics.

More than one billion people still live below the poverty line - most of them in South Asia and Sub-Saharan Africa. Financial inclusion is a major issue, as more than three-quarters of the numbers of poor and disadvantaged women and men do not have access to financial products and services, such as bank accounts, affordable and suitable loans, and insurance. The key objective of this book is to provide practical case studies of financial inclusion, rather than focus on academic debates such as the ideological basis of promoting microfinance. Using the recently adopted Sustainable Development Goals as an overall framing of the issues, it shows how poor and disadvantaged women and men can be bankable if the right facilitation for maximizing opportunities and addressing constraints are in place. Case studies confirm that achieving inclusive and sustainable access to financial products and services goes beyond simply enabling poor and disadvantaged women and men to have access to credit, or the ability to open a bank account. Examples from Africa, Asia and Latin America demonstrate encouraging progress in making microcredit accessible to millions of poor people. The foremost challenge, however, has been to ensure that they have access to, and usage intensity of, suitable and affordable financial products and services that meet the needs of their livelihoods as well as risks and mitigation strategies. This requires understanding that poor and disadvantaged women and men do not exist in isolation from complex and interdependent functions in the financial system, which includes a number of actors, diversified services, constraints (not just symptoms) and capacities and incentives. Overall, the book provides a rich source of examples of how building inclusive financial systems can empower the world's poor - by increasing income and employment opportunities, securing livelihoods and reducing poverty.

Indispensable coverage of new federal regulatory reforms and federal financial issues

An essential guide covering new federal regulatory reforms and federal financial issues

"Financial Institutions, Valuations, Mergers and Acquisitions, Third Edition" presents a new regulatory framework for financial institutions in the post-bailout era.Provides valuable guidance to assess risks, measure performance and conduct valuations processes to create shareholder valueCovers the protection of other stakeholders, including customers, regulators, government, and consumersOffers an up-to-date understanding of financial institutions, their challenges, and their opportunities in the post-Sarbanes-Oxley era

Over the past decade, substantial changes have taken place in the structure and range of products and services provided by the financial services industry. Get current coverage of these changes that have transformed both traditional organizations such as banks, thrifts, and insurance companies, as well as securities providers, asset management companies and financial holding companies with the up-to-the-minute coverage found in Financial Institutions, Valuations, Mergers and Acquisitions, Third Edition.

CVA, DVA, and FVA, which are the acronyms for credit, debit, and funding valuation adjustments, have become widely used by major banks since the financial crisis. This book aims to bridge the gap between the highly complex and mathematical models used by these banks to adjust the value of debt securities and interest rate derivatives, and the end users of the valuations, for example, accountants, auditors, and analysts. The book, which is essentially a tutorial, demonstrates the types of models that are used using binomial trees that are featured in the CFA (R) fixed income curriculum and allows readers to replicate the examples using a spreadsheet.

CVA, DVA, and FVA, which are the acronyms for credit, debit, and funding valuation adjustments, have become widely used by major banks since the financial crisis. This book aims to bridge the gap between the highly complex and mathematical models used by these banks to adjust the value of debt securities and interest rate derivatives, and the end users of the valuations, for example, accountants, auditors, and analysts. The book, which is essentially a tutorial, demonstrates the types of models that are used using binomial trees that are featured in the CFA (R) fixed income curriculum and allows readers to replicate the examples using a spreadsheet.

This book provides a comprehensive treatment of the important aspects of investment theory, security analysis, and portfolio selection, with a quantitative emphasis not to be found in most other investment texts.The statistical analysis framework of markets and institutions in the book meets the need for advanced undergraduates and graduate students in quantitative disciplines, who wish to apply their craft to the world of investments. In addition, entrepreneurs will find the volume to be especially useful. It also contains a clearly detailed explanation of many recent developments in portfolio and capital market theory as well as a thorough procedural discussion of security analysis. Professionals preparing for the CPA, CFA, and or CFP examinations will also benefit from a close scrutiny of the many problems following each chapter.The level of difficulty progresses through the textbook with more advanced treatment appearing in the latter sections of each chapter, and the last chapters of the volume.