Introduction to Banking

Introduction to Banking 2nd Edition is a thoroughly revised edition of the book first published in 2006. It offers a comprehensive insight into the business of banking, providing up-to-date information about the impact of the financial crisis upon the banking sector globally and the far-reaching regulatory reforms. Written by expert authors, this book covers both theoretical and applied issues relating to the global banking industry, highlighted by examples from across Europe and the wider international arena. It is organised into five main sections including a brand new section - advanced topics in banking. I truly welcome this thoroughly revised edition of the Introduction to Banking textbook. Its authors are world-class scholars who on a daily basis research a wide array of highly relevant banking topics and maintain many close contacts with the commercial and central banking community. I can see no better guides to lead undergraduates into the fascinating (and at times bewildering) banking landscape. Steven Ongena, Professor of Banking, University of Zurich, Swiss Finance Institute and CEPR I heartily endorse Introduction to Banking 2nd Edition, which thoroughly covers the topic of banking in the post-crisis world. Unlike other textbooks which are very US-centric, this is a global banking book which covers issues and institutions on a worldwide basis. Allen N. Berger, the H. Montague Osteen, Jr, Professor in Banking and Finance, Moore School of Business, and Carolina Distinguished Professor, University of South Carolina; Senior Fellow at Wharton Financial Institutions Center and Fellow of the European Banking Center, Tilburg University This thoroughly revised edition of the book contains inestimable new chapters on banking crises, new financial instruments and a wide range of advanced issues. The topics are examined with a distinguishing combination of analytical and practical approaches. This makes the book an invaluable instrument for teaching banking to undergraduates both at universities and business schools. I highly recommend it. Elena Carletti, Professor of Finance, Bocconi University, IGIER and CEPRList of figures List of tables List of boxes Preface Acknowledgements List of abbreviations and acronyms Part 1 Introduction to banking Chapter 1 What is special about banks? Chapter 2 Bank activities and services Chapter 3 Types of banking Chapter 4 International banking Part 2 Central banking and bank regulation Chapter 5 Theory of central banking Chapter 6 Central banks in practice Chapter 7 Bank regulation and supervision Chapter 8 Bank failures and banking crises Part 3 Issues in bank management Chapter 9 Banks' balance sheet and income structure Chapter 10 Bank financial management Chapter 11 Banking risks Chapter 12 Bank risk management Part 4 : Comparative banking markets Chapter 13 Banking in the UK Chapter 14 Banking in Europe Chapter 15 Banking in the US Chapter 16 Banking in Japan Chapter 17 Banking in emerging markets Part 5: Advanced topics in banking Chapter 18 Banks and markets Chapter 19 Mergers and acquisitions Chapter 20 Bank competition and financial stability Appendix A1 Interest rates, bonds and yields Appendix A2 Introduction to portfolio theory Glossary References and further reading Index