| Description |
1 online resource (xvi, 367 pages) : illustrations |
| Series |
World Bank e-Library.
|
| Contents |
Analyzing and Managing Banking Risk -- Introduction: The Changing Bank Environment -- Bank Exposure to Risk -- Corporate Governance -- Risk-Based Analysis of Banks -- Analytical Tools Provided -- A Context for the Risk-Based Review of Banks -- Introduction: Why Banks Are Analyzed -- Banks as Providers of Financial Information -- A Framework for Financial Sector Development -- A Holistic View of the Entire Financial System -- Disclosure and Transparency of Bank Financial Information: A Prerequisite for Risk-Based Analysis -- Key Players in the Corporate Governance and Risk Management Process -- Introduction: Corporate Governance Principles -- Regulatory Authorities: Establishing a Corporate Governance and Risk Management Framework -- Supervisory Authorities: Monitoring Risk Management -- The Shareholders: Appointing the Right Policymakers -- The Board of Directors: Ultimate Responsibility for a Bank's Affairs -- Management: Responsibility for Bank Operations and the Implementation of Risk Management Policies -- The Audit Committee and Internal Auditors: An Extension of the Board's Risk Management Function -- External Auditors: A Reassessment of the Traditional Approach of Auditing Bank -- The Role of the General Public -- Balance Sheet Structure and Management -- Introduction: Composition of the Balance Sheet -- Asset Structure: Growth and Changes -- Liabilities Structure: Growth and Changes -- Overall On- and Off-Balance-Sheet Growth -- Managing Risk Effectively -- Profitability -- Introduction: The Importance of Profitable Banks -- Income Statement Composition -- Income Structure and Profit Quality -- Profitability Indicators -- Profitability Ratio Analysis -- Capital Adequacy -- Introduction: The Characteristics and Functions of Capital -- Constituents of Regulatory Capital (Current Methodology) -- Coverage of Risk Components by Constituents of Capital (Current Methodology) -- Basel II: Proposed Changes for Determining Capital Adequacy -- Implementation of the Basel Accord -- Assessing Management Information with Respect to Capital Adequacy -- Credit Risk Management -- Introduction: Components of Credit Risk -- Credit Portfolio Management -- Review of Lending Function and Operations -- Credit Portfolio Quality Review -- Nonperforming Loan Portfolio -- Credit Risk Management Policies -- Policies to Limit or Reduce Credit Risk -- Asset Classification -- Loan Loss Provisioning Policy -- Liquidity Risk Management -- Introduction: The Need for Liquidity -- Liquidity Management Policies -- The Regulatory Environment -- The Structure of Funding: Deposits and Market Borrowing -- Maturity Structure and Funding Mismatches -- Deposit Concentration and Volatility of Funding -- Liquidity Risk Management Techniques -- Treasury Organization and Risk Management -- Introduction: Overview of Treasury Functions -- Establishing the Overall Policy Framework -- Market Operations -- Risk Analytics and Compliance -- Treasury Operations -- Corporate Governance and Operational Risk Assessment -- Management of the Stable Liquidity Investment Portfolio -- Nature of the Stable Liquidity Investment Portfolio -- Investment Policy -- Eligible Instruments -- Credit Risk -- Market Risk -- Benchmark Portfolio -- Active Management -- Risk Management and Risk Budgets -- Management Reporting -- Market Risk Management and Proprietary Trading -- Introduction: Market Risk Characteristics -- Portfolio Risk Management Policies -- Trading Book and Management of Trading Activities -- Market Risk Measurement -- Value at Risk -- Stress Testing -- Interest Rate Risk Management -- Introduction: Sources of Interest Rate Risk -- Risk Management Responsibilities -- Models for the Management of Interest Rate Risk -- The Impact of Changes in Forecast Yield Curves -- Currency Risk Management -- Introduction: Origin and Components of Currency Risk -- Policies for Currency Risk Management -- Currency Risk Exposure and Business Strategy -- Currency Risk Management and Capital Adequacy -- Transparency in the Financial Statements of Banks -- Introduction: The Importance of Useful Information -- Transparency and Accountability -- Transparency in Financial Statements -- Disclosure in the Financial Statements of Banks -- Deficiencies Found in Bank Accounting Practices -- The Relationship between Risk Analysis and Bank Supervision -- Introduction: The Bank Supervisory Process -- The Analytical Review Process -- Banking Risks and the Accountability of Regulatory/Supervisory Authorities -- The Supervisory Process -- Consolidated Supervision -- Supervisory Cooperation with Internal and External Auditors -- Background Questionnaire to Facilitate Analysis of Banks -- IAS-Required Disclosure in Financial Statements, by Risk Category -- Deficiencies Found in Accounting Practices -- A New Philosophy of Bank Supervision -- The Role of the Board -- The Board's Financial Risk Management Responsibilities -- Accountability of Bank Management -- "Fit and Proper" Standards for Bank Management -- Financial Risk and Management Responsibilities -- Internal Audit Controversies -- The Responsibilities of Audit Committees and Internal Auditors -- Financial Risk Management Responsibilities of External Auditors -- Content of a Loan Review File -- Signs of Distorted Credit Culture -- Asset Classification Rules -- Typical Liquidity Regulations or Internal Liquidity Guidelines -- ALM Mission Statement -- Asset Classes -- Criteria for Evaluating Accounting Standards -- Survey on Public Disclosures of Banks -- The Banking Risk Spectrum -- Partnership in Corporate Governance of Banks -- A Framework for Financial Sector Development -- Holistic View of the Financial System: A Template for Financial Sector Review -- Balance Sheet Components -- Structural Change and Assets Growth -- Changes in the Structure of a Bank's Assets Portfolio -- Structural Change and Growth of Capital and Liabilities -- Total Growth -- Low and Nonearning Assets as a Percentage of Total Assets -- Off-Balance-Sheet Items as a Percentage of Total Assets -- Structure of Gross Income -- Asset Structure versus Income Structure -- Sources of Income versus Costs -- Operating Income Ratios -- Average Yield Differential on Intermediation Business -- Return on Assets (ROA) and on Equity (ROE) -- Components of Shareholders' Funds -- Risk Profile of Assets -- Risk Profile of On- and Off-Balance-Sheet Items -- Actual versus Required Capital -- Estimating Potential Capital Requirement -- Loans to Customers Per Borrower Group -- Customer Loans by Product -- Maturity of Loans to Customers -- Loan Portfolio Statistics -- Exposure to the 20 Largest Borrowers -- Sectoral Analysis of Loans -- Classification of Loans -- Statutory Liquidity Required versus Actual Liquid Assets Held -- Customer Deposits by Sector -- Maturity Mismatch -- Maturities of Deposits Payable in Local Currency -- Ten Largest Sources of Deposits as Percentage of Total Customer Deposits -- Liquidity Statistics -- Holistic View of the Treasury Environment -- Benchmarking -- Operationalization of Strategic Asset Allocation -- Potential Risk Analytics Reports -- Example of Daily/Monthly Checklist of Portfolio Compliance Issues -- Treasury Operations: Reporting (Funding and Investment Business) -- Risk Management in the Treasury -- Trading Portfolio -- Marking to Market -- Potential Amount of Qualifying Capital Exposed -- Current and Forecast Yield Curves -- Potential Effect on Capital due to a Movement in Expected Yield Curve -- Currency Structure of Assets and Liabilities -- Currency Structure of Loan Portfolio and Customer Deposits -- Freely Convertible Currency Deposit Maturities as a Percentage of Total Customer Deposits -- Currency Risk Exposure as a Percentage of Qualifying Capital -- Transparency in Financial Statements -- The Context of Bank Supervision -- Banking Risk Exposures -- Possible Uses of Tools Provided -- Key Players and Their Responsibilities in Bank Governance and Risk Management -- Shareholder Information -- Supervisory Board/Board of Directors -- A Bank's Balance Sheet Structure -- Total Growth of Balance-Sheet and Off-Balance-Sheet Items -- Composition of Income and Expenses -- Profitability Ratios -- Credit Risk Multiplication Factors for Derivative Instruments -- Summary of Basel II Proposals -- Proposed Standardized Approach: Risk Weights Based on External Ratings -- Operational Risk: Business Lines and Operational Loss Event Types -- Capital Adequacy Ratios -- Calculating the Allowable Portion of Tier 3 Capital -- Loan Portfolio Statistics -- Related-Party Lending -- Recommended Provisions -- Maturity Ladder under Alternative Scenarios -- Liquidity Ratios -- Credit Risk Management Tools -- Examples of U.S. Dollar Market Indices -- Market Risk Management Tools -- Disclosures of Market Risk -- Simplistic Calculation of Net Open Positions -- A Repricing Gap Model for Interest Rate Risk Management -- Open Positions in Foreign Currencies -- International Accounting Standards Applicable to Banks -- Stages of the Analytical Review Process -- Proposed Outline for Bank Analytical Reports -- Off-Site Surveillance versus On-Site Examination -- Generic Features of Early Warning Systems -- Adapting the External Audit for Specific Circumstances/Needs |
| Summary |
This publication aims to complement existing methodologies by establishing a comprehensive framework for the assessment of banks, not only by using financial data, but also by considering corporate governance. It argues that each of the key players in the corporate governance process (such as shareholders, directors, executive managers, and internal and external auditors) is responsible for some component of financial and operational risk management. Following a holistic overview of bank analysis in Chapter 2, the importance of banking supervision in the context of corporate governance is discussed in Chapter 3. This chapter also considers the partnership approach and the emerging framework for corporate governance and risk management, as well as the identification and allocation of tasks as part of the risk management process. The framework for risk management is further discussed in Chapters 4 through 11 |
| Notes |
Originally published under title: Analyzing bank risk |
| Bibliography |
Includes bibliographical references and index |
| Notes |
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL |
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English |
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digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL |
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Print version record |
| Subject |
Bank management.
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Risk management.
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Corporate governance.
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Risk Management
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risk management.
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Bank management
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Corporate governance
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Risk management
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Risikomanagement
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Bank
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Corporate governance.
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Risk management.
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Financieel management.
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Bankwezen.
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Banques -- Gestion.
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Gestion du risque.
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Entreprises -- Direction générale.
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| Form |
Electronic book
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| Author |
Brajovic Bratanovic, Sonja, 1946-
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Greuning, Hennie van.
Analyzing banking risk
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| ISBN |
9780821354186 |
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0821354183 |
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128008409X |
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9781280084096 |
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9786610084098 |
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6610084092 |
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