银行管理学

Chapter 1 Overview of the Banking Industry 1

1.1 Introduction to Banking 1

1.1.1 What Is a Bank? 1

1.1.2 The Development of Banking 2

1.2 The Role of Bank in the Economy 3

1.2.1 The Role of Commercial Banks in the Economy 3

1.2.2 The Functions of Bank 5

1.3 The Fundamental Forces of Change in Banking 6

1.3.1 Deregulation and Reregulation 7

1.3.2 Financial Innovation 8

1.3.3 Securitization 10

1.3.4 Globalization 10

1.3.5 Advance in Technology 12

1.4 Organization Form of the Banking Industry 13

1.4.1 Unit Banking Versus Branch Banking 13

1.4.2 Financial Holding Companies 13

1.5 Bank in China 17

1.5.1 Reform of Banking System 17

1.5.2 Recent Banking Reform 19

1.5.3 The Opening-up of the Banking System 21

Chapter 2 Analyzing Banking Performance 24

2.1 Introduction 24

2.2 Balance Sheet 25

2.2.1 Bank Assets:Uses of Funds 28

2.2.2 Bank Liabilities and Equities:Sources of Funds 32

2.3 The Income Statement 35

2.4 The Relationship Between the Balance Sheet and Income Statement 42

2.5 The Return on Equity Model 44

2.5.1 All-Equity and All-Debt Banks 44

2.5.2 Bank Profitability Analysis 47

2.5.3 A Risk Index for Banks 50

Appendix 2.1 The Uniform Bank Performance Report(UBPR) 53

Chapter 3 The Funding Sources of Bank 56

3.1 Introduction 56

3.2 The Liability Structure of FDIC Insured Commercial Banks 59

3.2.1 Recent Trends in Bank Funding Source 59

3.2.2 Characteristics of Retail-Type Deposits 63

3.2.3 Characteristcs of Large Wholesale Liabilities 66

3.3 Measuring the Cost of Funds 74

3.3.1 The Average Historical Cost of Funds 75

3.3.2 The Marginal Cost of Funds 76

3.3.3 Costs of Independent Sources of Funds 77

3.3.4 Weighted Marginal Cost of Total Funds 80

3.3.5 Marginal Cost Analysis:an Application 81

3.4 Funding Sources and Banking Risk 83

3.4.1 Funding Sources:Liquidity Risk 84

3.4.2 Funding Sources:Interest Rate Risk 86

3.4.3 Funding Sources:Credit and Capital Risk 86

3.5 Deposit Insurance 87

3.5.1 Federal Deposit Insurance 87

3.5.2 Deposit Insurance Around the World 88

Chapter 4 The Effective Use of Capital 92

4.1 Why We Worry About Bank Capital? 92

4.2 Risk-based Capital Standards 93

4.2.1 Capital Adequacy 93

4.2.2 Basle Capital Accords 94

4.2.3 Basle Ⅱ Framework 94

4.2.4 Risk-Adjusted Return on Capital 96

4.3 The Constituents of Capital 97

4.3.1 Accounting Capital 97

4.3.2 Definition of Capital Included in the Capital Base 99

4.3.3 Definition of Capital Included in China 102

4.4 What Is the Function of Bank Capital? 104

4.4.1 Bank Capital Provides a Cushion to Absorb Losses 105

4.4.2 Bank Capital Provides Ready Access to Financial Markets 106

4.4.3 Capital Constrains Growth and Reduces Risk 106

4.5 Calculation and Measurement of Capital Adequacy Ratios 107

4.6 Economic Capital and the Assessment of Capital Adequacy 112

4.6.1 The Definition of Economics Capital 112

4.6.2 Example:Economic Capital Allocation for Commercial Credit Risk 114

Chapter 5 Bank Loans and Their Characteristics 119

5.1 Recent Trends in Loan Growth and Quality 119

5.1.1 The Overview of Loan Development in U.S 120

5.1.2 The Overview of Loan Development in China 123

5.2 The Credit Process 126

5.2.1 Business Development and Credit Analysis 127

5.2.2 Credit Execution and Administration 129

5.2.3 Credit Review 130

5.3 Different Types of Loans 130

5.3.1 The Characteristics of Different Types of Loans in U.S 130

5.3.2 The Types of Loans in China 134

5.4 Asset Transfers and Securitization 137

5.4.1 Introduction 137

5.4.2 Mechanics of the Asset Securitization Process 138

Chapter 6 Managing the Investment Portfolio 141

6.1 Introduction 141

6.1.1 The History of Banks Owning Securities in U.S 141

6.1.2 The History of Bank Owning Securities in China 143

6.2 Dealer Operations and the Securities Trading Account 145

6.2.1 The Classification of Dealer Operation 145

6.2.2 Accounting for Investment Securities 146

6.3 Objectives of the Investment Portfolio 147

6.3.1 Safety or Preservation of Capital 147

6.3.2 Liquidity 148

6.3.3 Yield 148

6.3.4 Diversify Credit Risk 149

6.3.5 Help Manage Interest Rate Risk Exposure 149

6.3.6 Pledging Requirements 149

6.4 Composition of the Investment Portfolio 150

6.4.1 The Composition of the Investment Portfolio in U.S.Commercial Bank 150

6.4.2 The Securities Investment in China's Commercial Bank 152

6.5 Establishing Investment Policy Guidelines 152

6.5.1 Return Objectives 153

6.5.2 Portfolio Composition 153

6.5.3 Liquidity Consideration 153

6.5.4 Credit Risk Consideration 154

Chapter 7 Liquidity Management 155

7.1 Cash Assets Management 155

7.1.1 The Introduction 155

7.1.2 Objectives of Cash Assets Holding 156

7.1.3 Cash Assets Versus Liquid Assets 157

7.2 Liquidity Planning 158

7.2.1 The Development of Liquidity Strategies 158

7.2.2 The Trade-off Between Liquidity and Profitability 161

7.2.3 Liquidity Needs and Risks 162

7.3 Measures of Liquidity 165

7.3.1 Asset Liquidity Measures 165

7.3.2 Loan-to-Deposit Ratio 166

7.3.3 Liability Liquidity Measures 167

7.3.4 Liquidity Analysis of Citibank 171

7.4 Projecting Liquidity Needs 172

7.4.1 An Application 172

7.4.2 Considerations in Selecting Liquidity Sources 175

Chapter 8 Financial Risk Management 179

8.1 Introduction 179

8.1.1 Why Risk Matters? 179

8.1.2 The Basic Categories of Risk 180

8.1.3 Prerequisites for Risk Management 181

8.2 Credit Risk Management 182

8.2.1 The Definition of Credit Risk 182

8.2.2 Measurement of Credit Risk 183

8.2.3 Techniques of Credit Risk Management 183

8.3 Market Risk Management 185

8.3.1 The Definition of Market Risk 185

8.3.2 Market Risk Measurement:VaR 186

8.3.3 Market Risk Management 187

8.4 Operational Risk Management 188

8.4.1 The Definition of Operational Risk 188

8.4.2 Sound Practices of Operational Risk Management 190

Chapter 9 Corporate Governance and Internal Control System 190

9.1 Introduction 194

9.1.1 The Foundations of Bank Corporate Governance 194

9.1.2 The Bank Corporate Governance in China 197

9.2 Sound Corporate Governance Principles 198

9.2.1 Establishing Strategic Objectives and a Set of Corporate Values 198

9.2.2 Enforcing Clear Lines of Responsibility and Accountability 199

9.2.3 Ensuring That Board Members Are Qualified for Their Positions 200

9.2.4 Ensuring Appropriate Oversight Conducted by Senior Management 202

9.2.5 Effectively Utilizing the Work Conducted by Internal and External Auditors 202

9.2.6 Ensuring That Compensation Policies and Practices Are Consistent with the Bank 204

9.2.7 Conducting Corporate Governance in a Transparent Manner 204

9.2.8 Understanding of the Bank's Operational Structure 205

9.3 Introduction of Internal Control in Banking 206

9.3.1 Background 206

9.3.2 The Objectives and Role of Internal Control 208

9.3.3 The Major Elements of an Internal Control Process 209

9.4 Principles for the Assessment of Internal Control Systems 210

9.4.1 Management Oversight and the Control Culture 210

9.4.2 Risk Recognition and Assessment 211

9.4.3 Control Activities and Segregation of Duties 212

9.4.4 Information and Communication 213

9.4.5 Monitoring Activities and Correcting Deficiencies 213

9.4.6 Evaluation of Internal Control Systems by Supervisory Authorities 213

Chapter 10 Global Banking Activities 215

10.1 Overview of International Banks 215

10.1.1 The Development of International Banking 215

10.1.2 Structuring the Overseas Operation 217

10.1.3 Choosing an Organizational Structure 220

10.2 Services of Global Commercial Banks 221

10.2.1 Credit Services 221

10.2.2 Syndicated Loan Facilities 222

10.2.3 Project Finance 224

10.2.4 Trade Finance 226

10.2.5 Commercial Paper and Note Issuance Facilities 226

10.2.6 Currency Exchange 227

10.3 Banking System Around the World 228

10.3.1 Japan 228

10.3.2 United Kingdom 231

10.3.3 France 233

10.3.4 German 235

Reference 238