Bank Valuation and Value-Based Management Deposit and Loan Pricing, Performance Evaluation, and Risk Management

Bank Valuation & Value-Based Management provides bankers, bank regulators, auditors, and risk managers with foundational concepts and practical tools for effectively managing a bank.

An expert in asset and liability management, European financial markets, and banking theory, Jean Dermine provides rigorous foundations to discuss asset and liability management at a global level, with an integrated focus on an institution's banking book. He covers bank valuation, fund transfer pricing, deposit and loan pricing, risk management, and performance measurement, and addresses two high-profile issues for banks worldwide: portfolio credit risk and liquidity risk.

This thorough and innovative guide presents insightful coverage on the hazards of measuring portfolio credit risk, the impact of liquidity risk on fund transfer pricing, and the practice of performance measurement in the banking industry. Numerous real-world examples from the U.S. subprime crisis help illustrate the nature and dynamics of these issues.

Inside, you will find a framework for discussing such managerial issues as:

• Bank valuation
• Fund transfer pricing
• Deposit pricing
• Capital management
• Loan pricing and provisioning
• Securitization
• Measurement of interest rate risk
• Performance measurement

Key Features

'         Esteemed INSEAD professor: Jean Dermine is the professor of banking & finance at INSEAD and was visiting professor at Wharton. He has written numerous articles on asset & liability management, European financial markets, and the theory of banking, and has published four books.

'         Well-defined audience: Addresses a clear core readership of intuitional bankers, risk managers, and other banking professionals.

'         Cross over market: Will be of interest to graduate students in finance and MBA programs.

'         Unique addition to literature: Finance and risk professionals rely on valuation models to simultaneously assess value creation opportunities and to control risk. This is one of the most comprehensive references to hit the market that provides a valuation model specifically for banks.