Contemporary Financial Intermediation, Fifth Edition offers a distinctive approach to the study of financial markets and institutions by presenting an integrated portrait that puts information and economic reasoning at the core. The book explores the implications of the information technology revolution that characterizes the financial services industry with digitization and fintech as important manifestations. Sections explore the subtlety, plasticity, and fragility of financial institutions and credit markets, and the ramifications for risk management (including cyber risk). This textbook demands more in terms of quantitative skills and analysis, but its ability to teach about the forces shaping the financial world is unmatched.
For the financial sector, the best preprofessional training explains the reasons why markets, institutions, and regulators evolve the way they do, why we suffer recurring financial crises, how we typically react to them, and how digitization and fintech will affect financial services and the industry at large. This book provides students with a complete foundation on the subject, presenting a strong basis for learning and understanding key challenges surrounding the management and operations of financial institutions and their competitive environment.
• Offers a full grounding in the study of financial markets and institutions, building on core
economic insights
• Adopts an applied, integrated approach and is fully updated for recent developments in the field
• Focuses on key challenges for executives and regulators
• Accompanied by an online instructor’s manual, lecture slides, and test bank to reinforce understanding
1. Chapter 1. Introduction - p. 3 2. Part II. What Is Financial Intermediation? - p. P2 3. Chapter 2. The Nature and Variety of Financial Intermediation - p. 17 4. Chapter 3. The What, How, and Why of Financial Intermediaries - p. 65 5. Part III. Identification and Management of Major Banking Risks - p. P3 6. Chapter 4. Bank Risks - p. 109 7. Chapter 5. Interest Rate Risk - p. 135 8. Chapter 6. Liquidity Risk - p. 169 9. Part IV. "On Balance Sheet" Banking Activities - p. P4 10. Chapter 7. Spot Lending and Credit Risk - p. 189 11. Introduction - p. 189 12. Description of Bank Assets - p. 190 13. What Is Lending? - p. 196 14. Loans Versus Securities - p. 200 15. Structure of Loan Agreements - p. 202 16. Informational Problems in Loan Contracts and the Importance of Loan Performance - p. 204 17. Credit Analysis: The Factors - p. 208 18. Sources of Credit Information - p. 235 19. Analysis of Financial Statements - p. 237 20. Loan Covenants - p. 242 21. Conclusion - p. 246 22. Review Questions - p. 247 23. Chapter 8. Further Issues in Bank Lending - p. 253 24. Chapter 9. Special Topics in Credit: Syndicated Loans, Loan Sales, and Project Finance - p. 301 25. Part V. Off The Bank’s Balance Sheet - p. P5 26. Chapter 10. Off-Balance Sheet Banking and Contingent Claims Products - p. 321 27. Chapter 11. Securitization - p. 383 28. Part VI. The Funding of The Bank - p. P6 29. Chapter 12. The Deposit Contract, Deposit Insurance, and Shadow Banking - p. 447 30. Chapter 13. Bank Capital Structure - p. 501 31. Part VII. Financial Crises - p. P7 32. Chapter 14. The 2007–2009 Financial Crisis and Other Financial Crises - p. 527 33. Part VIII. Bank Regulation - p. P8 34. Chapter 15. Objectives of Bank Regulation - p. 573 35. Chapter 16. Milestones in Banking Legislation and Regulatory Reform - p. 627 36. Part IX. Future - p. P9 37. Chapter 17. The Future - p. 671 38. Part X. Concepts - p. P10 39. Chapter 18. Basic Concepts - p. 703 40. Index - p. 737
Contemporary Financial Intermediation, Fifth Edition offers a distinctive approach to the study of financial markets and institutions by presenting an integrated portrait that puts information and economic reasoning at the core. The book explores the implications of the information technology revolution that characterizes the financial services industry with digitization and fintech as important manifestations. Sections explore the subtlety, plasticity, and fragility of financial institutions and credit markets, and the ramifications for risk management (including cyber risk). This textbook demands more in terms of quantitative skills and analysis, but its ability to teach about the forces shaping the financial world is unmatched.
For the financial sector, the best preprofessional training explains the reasons why markets, institutions, and regulators evolve the way they do, why we suffer recurring financial crises, how we typically react to them, and how digitization and fintech will affect financial services and the industry at large. This book provides students with a complete foundation on the subject, presenting a strong basis for learning and understanding key challenges surrounding the management and operations of financial institutions and their competitive environment.
• Offers a full grounding in the study of financial markets and institutions, building on core
economic insights
• Adopts an applied, integrated approach and is fully updated for recent developments in the field
• Focuses on key challenges for executives and regulators
• Accompanied by an online instructor’s manual, lecture slides, and test bank to reinforce understanding
1. Chapter 1. Introduction - p. 3 2. Part II. What Is Financial Intermediation? - p. P2 3. Chapter 2. The Nature and Variety of Financial Intermediation - p. 17 4. Chapter 3. The What, How, and Why of Financial Intermediaries - p. 65 5. Part III. Identification and Management of Major Banking Risks - p. P3 6. Chapter 4. Bank Risks - p. 109 7. Chapter 5. Interest Rate Risk - p. 135 8. Chapter 6. Liquidity Risk - p. 169 9. Part IV. "On Balance Sheet" Banking Activities - p. P4 10. Chapter 7. Spot Lending and Credit Risk - p. 189 11. Introduction - p. 189 12. Description of Bank Assets - p. 190 13. What Is Lending? - p. 196 14. Loans Versus Securities - p. 200 15. Structure of Loan Agreements - p. 202 16. Informational Problems in Loan Contracts and the Importance of Loan Performance - p. 204 17. Credit Analysis: The Factors - p. 208 18. Sources of Credit Information - p. 235 19. Analysis of Financial Statements - p. 237 20. Loan Covenants - p. 242 21. Conclusion - p. 246 22. Review Questions - p. 247 23. Chapter 8. Further Issues in Bank Lending - p. 253 24. Chapter 9. Special Topics in Credit: Syndicated Loans, Loan Sales, and Project Finance - p. 301 25. Part V. Off The Bank’s Balance Sheet - p. P5 26. Chapter 10. Off-Balance Sheet Banking and Contingent Claims Products - p. 321 27. Chapter 11. Securitization - p. 383 28. Part VI. The Funding of The Bank - p. P6 29. Chapter 12. The Deposit Contract, Deposit Insurance, and Shadow Banking - p. 447 30. Chapter 13. Bank Capital Structure - p. 501 31. Part VII. Financial Crises - p. P7 32. Chapter 14. The 2007–2009 Financial Crisis and Other Financial Crises - p. 527 33. Part VIII. Bank Regulation - p. P8 34. Chapter 15. Objectives of Bank Regulation - p. 573 35. Chapter 16. Milestones in Banking Legislation and Regulatory Reform - p. 627 36. Part IX. Future - p. P9 37. Chapter 17. The Future - p. 671 38. Part X. Concepts - p. P10 39. Chapter 18. Basic Concepts - p. 703 40. Index - p. 737
