Commercial Banking: The Management of Risk

The environment in which banks operate changescontinuously.Commercial Banking focuses on the corefunctions of a bank with a strong emphasis on the management ofrisk. This new textbook provides a comprehensive, practicalintroduction to bank management and current banking practices usedto control different kinds of risk. The text discusses the factorswhich affect the value of a bank and the techniques for managingthat value. Written in accordance with current APRA regulatoryrequirements, the text also considers an international context inrespect to IFRS and its impact on the banking sector, and therequirements of the new Basle II framework.FEATURESUp to date information on regulatory and legal changes requiredunder Basle II and APRA.Discusses the factors that affect the value of a bank and thetechniques for managing that value through the use of financialderivatives.Coverage of futures and options, and their use in managing bankrisk, is easy to read and contextualised within the day-to-dayactivities of a bank.Chapter on credit evaluation process, chapter 8.Chapter vignettes and end-of-chapter case studies highlightcurrent, practical issues that will help students apply knowledgeand develop their understanding.Comprehensive coverage of core functions and other bankingactivities.ABOUT THE AUSTRALASIAN AUTHORSKatherine Avram, MCom (Hons), BEc (Hons), DipEd, is SeniorLecturer in the Department of Accounting & Finance, at MonashUniversity where she teaches commercial bank management and iscoordinator of the undergraduate banking program. Her researchinterests and publications relate to interbank settlement systems,financial institutions and regulation. She has acted as consultantto the National Australia Bank and the Consumer Credit LegalService and is a senior associate of the Australasian Institute ofBanking and Finance.Diana Beal is an Associate Professor in Finance at theUniversity of Southern Queensland. She joined USQ in 1988 and hassince completed a Masters and a PhD in economics. She is alsoDirector of the Centre for Australian Financial Institutions.Rod Lambert is lecturer in the Department of Accounting &Finance at Monash University. Prior to joining academia he workedin the banking, finance and insurance industries for over 20 years,holding executive level positions in listed companies such as ANZBank, Bank of Melbourne, OAMPS Ltd and Sedgwick Group. As aconsultant or interim (contract) manager, he has successfullycompleted assignments for over 30 clients, including all four majorbanks, many regional banks, and a number of insurance companies andtechnology companies. He is a Fellow of both the AustralianInstitute of Banking and Finance, and the Australian Institute ofCompany Directors. His major research interests are in the field offinancial institution failures and deposit runs, and relatedbehavioural, regulatory, management and economic factors.