Understanding International Bank Risk
Wiley Finance Series
1. Edition December 2003
248 Pages, Hardcover
Wiley & Sons Ltd
Short Description
In an era of globalization, syndicated lending, and consolidation within the banking industry, virtually all industries have international dealings and their consequential risks. An understanding of international risk, from that of bank or country failure to the idiosyncrasies of different religious, cultural, and regulatory frameworks, is essential to the modern banker. this book gives the reader a thorough understanding of how to calculate, analyze, and manage such risks.
In an era of globalisation, syndicated lending and consolidation within the banking industry, virtually all industries will have international dealings, whether directly or indirectly, and will therefore be exposed to consequential risks. An understanding of international risk, from that of bank of country failure to the idiosyncrasies of different regulatory frameworks, is essential for the modern banker. This book gives the reader a thorough understanding of how to calculate, analyse and manage such risks.
About the Author.
1 The Banking Background.
1.1 Different types of banks and their risk profile.
1.2 Primary causes of bank failure.
1.3 Bank failures - the four aces.
1.4 The macroeconomic environment.
2 The Rating Framework.
2.1 What is a rating?
2.2 The development of ratings.
2.3 Background to rating agencies.
2.4 The rating analytical framework.
2.5 How the rating agencies analyse bank risk.
3 The Regulatory Framework.
3.1 Banking system: structure, governing law, and regulations.
3.2 Core principles for effective banking supervision.
3.3 Risk management.
3.4 Basle Capital Adequacy and international convergence.
4 The Analytical Framework.
4.1 Introduction.
4.2 Financial criteria - the key factors.
4.3 Understanding the bank's balance sheet.
5 Bankscope and Comparative Techniques.
5.1 Bankscope spreadsheet analysis.
5.2 Bankscope ratios and ratio analysis.
5.3 Bank peer group analysis.
5.4 Problems with intercountry comparisons.
6 Country and Political Risk.
6.1 Country risk.
6.2 Political risk.
6.3 Typical sovereign ratings process.
7 The World of E-finance.
7.1 A quick definition of e-finance.
7.2 CRM - Customer Relationship Management.
7.3 STP/CLS.
7.4 SWIFT.
7.5 Electronic funds transfer.
7.6 Online banking.
7.7 Day trading.
7.8 Smart cards.
7.9 Evolution of e-finance.
7.10 Origin of e-finance and internet commerce.
8 Conclusion.
Glossary.
Suggested Readings.
Appendix I.
Appendix II.
Appendix III.
Index.
He has over 15 years of experience in international banking and financial analysis gained in Paris and London with Chase Manhattan Bank, IBCA Rating Agency, Euromoney Training, and the French Banker's Training Institute.
He is a financial trainer and consultant to several banks, central banks, and IT companies, and a successful author, having written over 15 books on financial analysis, banking risk analysis, credit risk management, credit rating agencies, and information technology in financial services.
He divides his time between London, where he works, and his home in the South of France.
