The Bank Analyst's Handbook: Money, Risk and Conjuring Tricks

575 Pages·2004·22.04 MB·English

by  Frost S.M.

The Bank Analyst’s
Handbook
Money, risk and conjuring tricks
Stephen M Frost

The Bank Analyst’s Handbook

The Bank Analyst’s
Handbook
Money, risk and conjuring tricks
Stephen M Frost
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LibraryofCongressCataloging-in-PublicationData
Frost,StephenM.
Thebankanalyst’shandbook:money,risk,andconjuringtricks/StephenM.Frost.
p. cm.
Includesbibliographicalreferencesandindex.
ISBN0-470-09118-5(alk.paper)
1.Banksandbanking. I.Title.
HG1601.F762004
332.1–dc22 2004002790
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For my children
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Contents
Foreword ix
Acknowledgements xiii
Prologue xv
PartI FinancialSystems 1
1 SecuritiesMarketsandFinancialIntermediation 3
2 IntroductiontoSecuritiesValuations 27
3 CentralBanksandtheCreationofMoney 47
PartII TheSpreadBusiness 69
4 DepositTakingandOtherFunding 71
5 CorporateLending 83
6 OperationalServices 99
7 MortgageLending 107
8 CreditCardsandOtherRetailLoans 117
PartIII RiskManagement 129
9 TheControlsCycle 131
10 ManagingInterestRateandFXRisk 139
11 Trading 159
12 ManagingMarketRisk 181
13 ManagingCreditRisk 201
14 CapitalManagement 227
PartIV CapitalMarkets 253
15 FundManagement 255
16 StockandBondIssuanceandBrokerage 285
17 Securitization 307
PartV BankValuationsandAcquisitions 319
18 BankValuations 321
19 BankAcquisitions 349
PartVI ProblemLoansandBankingCrises 367
20 CorporateFailuresandProblemLoans 369
21 BankingCrises 387
22 DealingwithandValuingInsolventBanks 405
PartVII SupervisionandFinancialStatements 417
23 Regulation,SupervisionandPolicing 419
24 TheBalanceSheet 435
25 TheIncomeStatement 451
vii