Sách Modern Banking - Shelagh Heffernan

Modern Banking - Shelagh Heffernan (739 pages)


The banking industry is so vast and complex that most books on banking usually restrict themselves to specific banking disciplines or key trends. It is therefore a welcome event to see a book focused on the entire banking industry as such. Modern Banking, authored by Shelagh Heffernan, a professor of banking and finance at the Cass Business School in City University, London, is among the rare books that manages to provide a wholesome perspective of the banking industry right from the theory to more practical and relevant aspects of banking.
Modern Banking begins with a review of fundamental concepts like what differentiates a bank from other financial institutions, the various types of banks within a banking structure, commercial banks, merchant banks, and investment banks and the role of central banks. According to Heffernan, a bank undertakes two core functions, which singles it out from other financial institutions, the provision of intermediary and liquidity services. A bank offers loans and deposit products on the market and caters to the changing liquidity needs of its borrowers and depositors.



Shelagh Heffernan: Modern Banking

The banking industry is so vast and complex that most books on banking usually restrict themselves to specific banking disciplines or key trends. It is therefore a welcome event to see a book focused on the entire banking industry as such. Modern Banking, authored by Shelagh Heffernan, a professor of banking and finance at the Cass Business School in City University, London, is among the rare books that manages to provide a wholesome perspective of the banking industry right from the theory to more practical and relevant aspects of banking.Modern Banking begins with a review of fundamental concepts like what differentiates a bank from other financial institutions, the various types of banks within a banking structure, commercial banks, merchant banks, and investment banks and the role of central banks. According to Heffernan, a bank undertakes two core functions, which singles it out from other financial institutions, the provision of intermediary and liquidity services. A bank offers loans and deposit products on the market and caters to the changing liquidity needs of its borrowers and depositors. Often, a by-product of these core functions is the provision of payment services. And given that banks’ core activities involve money, it also means that banks play a special role in the monetary economy with their activities affecting the overall money supply in the countries where they operate. The book then goes on to discuss the diversification of banks into non-banking financial activities, their growing reliance on non-interest income and the development of new financial methods like securitisation and derivatives. Outlining the key challenges facing banks today in an increasing globalizing world Heffernan also looks at how banks can cope with rapid advances in technology. The banks most likely to survive, he says, are those which embrace the rapid progress of information technology, consolidation of the banking/financial services sector and for European banks, the advent of the Euro together with a single European financial market.Modern Banking looks at bank failure, reporting on quantitative methods used to identify the precise determinants of bank failure, and at the issue of financial crises,what contributes a financial crisis and how it can be managed. It also dwells at length on risk management. As Heffernan puts it, the central intermediary role played by a bank is evolving through time, from the traditional intermediation between borrowers and lenders through to more sophisticated intermediation as risk managers. A discussion on the management of different risks invariably leads to an analysis of one of the primary begin with the goal of circumscribing the incentive of banks to take excessive risks owning to the moral hazard in the safety challenges facing banks today - prudential regulation. Not only does the book focus on international regulation such as Basel I & II, it also covers the structure and regulation of banks in developed economies that host the key global financial centres namely US, UK, Japan and EU.Significantly, unlike several banking books that focus almost entirely upon developed countries, Modern Banking reflects the growing impact of emerging economies on the global financial landscape today. It covers banking in emerging markets in depth and also provides an overview of Islamic banking.
Taking into account the criticality of being competitive for banks around the globe, Heffernan covers some of the main factors that govern bank competitiveness such as productivity, scale and efficiency. While this section is extremely relevant to the overall theme, unlike the rest of the book, it is overtly technical in its treatment with a preponderance of econometric models. In addition, some key ideas such as the importance of customer service and customer retention have been completely overlooked. Other than this inexplicable lacuna in an otherwise excellent treatise, Modern Banking offers a much-needed overview of the banking industry. Further, to illustrate the main ideas and themes covered throughout the book, Heffernan has also included a few interesting case studies towards the end.
At 800 odd pages, Modern Banking is not for the faint hearted. As Heffernan states, it is primarily designed for courses in banking and finance at Masters, MBA programs or undergraduate programmes. But given the nature of its contents which effectively capture the true essence of banking in the modern world today, the fluid prose and clarity of ideas, Modern Banking is highly relevant to banking practitioners wishing to deepen their understanding of banking, and would make an excellent reference book?
Rekha Menon
Research and Contributing Editor
FinacleConnect

Table of Contents
ACKNOWLEDGEMENTS.
PREFACE.
CHAPTER 1: What are Banks and What Do They Do?
1.1 Introduction.
1.2 The Meaning of Banking.
1.3 Organisational Structures.
1.4 Banking Structures.
1.5 Financial Conglomerates.
1.6 Central Banking.
1.7 Summary: Why are Banks Special?
1.8 Conclusion.
CHAPTER 2: Diversification of Banking Activities.
2.1 Introduction.
2.2 The Expansion of Banks into Non–banking Financial Services.
2.3 The Effect of Non–interest Income on Banks’ Total Income.
2.4 Global Markets and Centres.
2.5 International Banking.
2.6 Banking Issues in the 21st Century.
2.7 Conclusion.
CHAPTER 3: Management of Risks in Banking.
3.1 Introduction.
3.2 Key Financial Risks in the 21st Century.
3.3 Approaches to the Management of Financial Risks.
3.4 Financial Derivatives and Risk Management.
3.5 Management of Market Risk.
3.6 Management of Credit Risk.
3.7 Risk Management by Major Global Bank.
3.8 Conclusion.
CHAPTER 4: Global Regulation of Banks.
4.1 Introduction.
4.2 Why Regulate?
4.3 International Regulation.
4.4 Basel 2 – The Three Pillar Approach.
4.5 Alternative or Complementary Approaches to Basel.
4.6 International Financial Architecture.
4.7 Conclusion.
CHAPTER 5: Bank Structure and Regulation: UK, USA, Japan, EU.
5.1 Introduction.
5.2 Bank Structure and Regulation in the UK.
5.3 Bank Structure and Regulation in the USA.
5.4 Bank Structure and Regulation in Japan.
5.5 Bank Structure and Regulation in the EU.
5.6 Conclusions: Structure and Regulation of Banks.
CHAPTER 6: Banking in Emerging Economies.
6.1 Introduction.
6.2 Financial Repression and Evolving Financial Systems.
6.3 Banking Reforms in Russia, China and India.
6.4 Islamic Banking.
6.5 Sovereign and Political Risk Analysis.
6.6 Conclusion.
CHAPTER 7: Bank Failures.
7.1 Introduction.
7.2 Bank Failure – Definitions.
7.3 Case Studies on Bank Failure.
7.4 The Determinants of Bank Failure: A Qualitative Review.
7.5 Bank Failure: Quantitative Models.
7.6 Conclusion.
CHAPTER 8: Financial Crises.
8.1 Introduction.
8.2 Definitions and Controversies.
8.3 The South East Asian Financial Crisis, 1997–99.
8.4 The Japanese Banking Crisis.
8.5 Scandinavian Banking Crises.
8.6 Long Term Capital Management (LTCM).
8.7 Lender of Last Resort.
8.8 Conclusions.
Appendix 8.1 Japanese Financial Reforms (Big Bang, 1996).
Appendix 8.2 Reform of the Regulators.
CHAPTER 9: Competitive Issues in Banking.
9.1 Introduction.
9.2 Measuring Bank Output.
9.3 X–efficiency, Scale Economies and Scope Economies.
9.4 Empirical Models of Competition in Banking.
9.5 Consolidation in the Banking Sector.
9.6 Conclusion.
CHAPTER 10: Case Studies.
10.1 Introduction.
10.2 Goldman Sachs.
Appendix.
10.3 Kidder Peabody Group.
10.4 From Sakura to Sumitomo Mitsui Financial Group.
10.5 Bancomer: A Study of an Emerging Market Bank.
10.6 Credit Lyonnais.
10.7 Continental Illinois Bank and Trust Company.
10.8 Bankers Trust: From a Commercial/Investment Bank to Takeover by Deutsche Bank.
REFERENCES/BIBLIOGRAPHY.
INDEX.