Financial Risk Management in Banking : The Theory and Application of Asset and Liability Management
About the Book
In Financial Risk Management in Banking, authors Dennis G. Uyemura and Donald R. van Deventer collaborate to provide a complete and in-depth overview of asset and liability management (ALM). This text focuses on clear-cut and fundamental principles and applications to financial risk management in any financial institution. It also concentrates on a solid, practical basis for currency and international funds risk issues by linking them with ALM, resulting in a unified approach to risk management and ALM management.
Financial Risk Management in Banking offers a positive direction to a better understanding of the total ALM process which includes its goals, the different types of risks, the financial organizational structure and the elements of a successful asset and liability manager. The integration and implementation of these combined factors bode well for long-term profitability and shareholder value performance. This thought-provoking guide highlights the subtleties that set ALM apart from basic financial concepts, including the nature of risk, return and performance measurement; capital regulation; using market signals in loan pricing and capital allocations; interest rate risk overview, mismatching and hedging, and analyses; profitability measurement; transfer pricing; and putting it all together.
Financial Risk Management in Banking provides a practical and comprehensive overview of aggressive asset and liability management (ALM) which highlights the nuances that set ALM apart from basic financial concepts and practices as they are taught even at the MBA level. It demonstrates how ALM can strengthen the capital position of today's financial institution. Topics include:
- How accounting concepts can interfere with ALM
- Currency and international funds risk
- The multi-dimensional aspects of bank financial risk
- The relationship between cash flow, market value and risk.