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Closely examine the impact of today's changing, competitive environment on commercial banks and banking services, as well as the entire financial services industry, with Koch/MacDonald's BANK MANAGEMENT, 8E. This new edition reflects the latest changes and developments, from complete regulatory updates to details of the many programs evolving amidst today's financial crises. Whether your students are practicing or future professionals, they will gain a better understanding of the risks associated with loans and securities, the process of securitization, excessive leverage and inadequate liquidity. Core business models demonstrate value core operating earnings versus trading as well as price- and volume-driven profits. The book provides a framework for developing effective strategies that ensure a proper balance between management's profit targets and allowable risk taking. The book's unique approach to understanding commercial bank management from a decision-making perspective presents actual bank managers making strong financial decisions. Your students clearly see how decisions in one area affect performance and opportunities in other areas. Students gain a solid foundation in the key issues confronting managers today as they become familiar with basic financial models used to formulate decisions and better understand the strengths and weaknesses of data analysis. With the help of this latest edition, students develop the logical thought processes needed to achieve strong financial and management results.
- DISCUSSIONS HIGHLIGHT THE CHANGING LANDSCAPE OF TODAY'S FINANCIAL SERVICES INDUSTRY --Timely, engaging discussions throughout this edition clearly describe the changing landscape of today's financial services industry. This edition closely explores investment banks evolving into bank holding companies.
- This new edition reflects complete regulatory updates throughout. This edition closely examines the many programs evolving from the financial crisis to provide liquidity to today's banking system. The book highlights the Troubled Asset Relief Program, Term Securities Lending Facility and related programs as well as many of the most recent regulatory actions.
- AUTHORS CLOSELY EXAMINE THE SUBPRIME MORTGAGE CRISIS --This edition provides a thorough, insightful analysis of today's subprime mortgage crisis, its impact on financial institutions and the economy as well as regulatory responses.
- COMPARISONS PROVIDE UP-TO-DATE EVALUATION OF COMMERCIAL BANK PERFORMANCE --This edition provides the latest, comprehensive evaluation of commercial bank performance and its impact on the analyst's job of evaluating performance.
- FOCUS ON DECISION-MAKING AND UNDERSTANDING COMMERCIAL BANK MANAGEMENT --Key chapters address the specific aspects of an issue or problem, explain how a financial model or decision framework applies, and then demonstrate the application of the model of framework using sample data.
- ONE-OF-A-KIND FOCUS ON CASH FLOW ANALYSIS HIGHLIGHTS THIS PART OF THE LENDING DECISION --This book remains the only text that focuses on cash flow analysis as part of the lending decision. The authors introduce a comprehensive procedure to generate cash-based income statements, explain how to interpret the results, and provide an approach to forecast a potential borrower's future performance.
- ADDITIONAL MATERIAL HAS BEEN ADDED TO ADDRESS THE CHANGING FINANCIAL SERVICES INDUSTRY LANDSCAPE -- Chapter 1 is a new chapter, specifically addressing the changes in the financial landscape since the last edition (2009). Chapter 5 addresses the difference in business models of non-traditional banking organizations.
- END-OF-CHAPTER CASES, QUESTIONS, AND PROBLEMS PROVIDE AN OPPORTUNITY TO TEST THE STUDENT'S UNDERSTANDING OF IMPORTANT ISSUES AND DATA ANALYSIS.
- MICROSOFT EXCEL TEMPLATES ARE AVAILABLE FOR THOSE WHO WISH TO USE MICROCOMPUTERS TO PERFORM AND EXTEND THE DATA ANALYSIS PRESENTED IN THE BOOK -- The templates provide a generic decision model for applications related to analyzing bank performance and key financial ratios, and cash flow from operations for nonfinancial firms. They also provide a full range of decision models with data for key problems and cases in the text.
2. Government Policies and Regulation.
3. Analyzing Bank Performance.
4. Managing Noninterest Income and Noninterest Expense.
5. The Performance of Nontraditional Banking Companies.
6. Pricing Fixed-Income Securities.
7. Managing Interest Rate Risk: GAP and Earnings Sensitivity.
8. Managing Interest Rate Rick: Duration Gap and Economic Value of Equity.
9. Using Derivatives to Manage Interest Rate Risk.
10. Funding the Bank.
11. Managing Liquidity.
12. The Effective Use of Capital.
13. Overview of Credit Policy and Loan Characteristics.
14. Evaluating Commercial Loan Requests and Managing Credit Risk.
15. Evaluating Consumer Loans.
16. Managing the Investment Portfolio.
17. Global Banking Activities.
Cengage provides a range of supplements that are updated in coordination with the main title selection. For more information about these supplements, contact your Learning Consultant.
Help your students develop the skills and solid foundation in today's banking and finances that they need for success while you save time with the rich array of online teaching and learning resources on this companion website. You'll find a wealth of password-protected teaching resources, including the Instructor's Manual, Test Bank, PowerPoint slides and Excel spreadsheet templates, available for download as you need them.