The concept of risk management serves as the unifying theme. A bank's asset and liability management committee (ALCO) or risk management committee is responsible for the overall financial planning and management of the bank's profitability and risk profile. The book emphasizes how managers can develop and implement strategies to maximize stockholders wealth by balancing the trade-off between banking risks and returns. One of the book's primary purposes is to explain how market risk (interest rate risk, equity price risk, and foreign exchange rate risk), liquidity risk, credit risk, capital/solvency risk and operational risk are measured and how decisions to alter a bank's risk profile affects profitability and growth opportunities. The book demonstrates how risk management decisions in different areas affect each other and the overall profitability and risk of the institution.
- ISBN10 032440588X
- ISBN13 9780324405880
- Publish Date 25 September 2005
- Publish Status Out of Print
- Out of Print 9 December 2009
- Publish Country US
- Publisher Cengage Learning, Inc
- Imprint South-Western
- Edition International ed
- Format Paperback
- Pages 575
- Language English