In this revised edition, Jonathan Golin and Philippe Delhaise expand on the role of bank credit analysts and the methodology of their practice. Offering investors and practitioners an insider's perspective on how rating agencies assign all-important credit ratings to banks, the book is updated to reflect today's environment of increased oversight and demands for greater transparency. It includes international case studies of bank credit analysis, suggestions and insights for understanding and complying with the Basel Accords, techniques for reviewing asset quality on both quantitative and qualitative bases, explores the restructuring of distressed banks, and much more.
- Features charts, graphs, and spreadsheet illustrations to further explain topics discussed in the text
- Includes international case studies from North America, Asia, and Europe that offer readers a global perspective
- Offers coverage of the Basel Accords on Capital Adequacy and Liquidity and shares the authors' view that a bank could be compliant under those and other regulations without being creditworthy
A uniquely practical guide to bank credit analysis as it is currently practiced around the world, The Bank Credit Analysis Handbook, Second Edition is a must-have resource for equity analysts, credit analysts, and bankers, as well as wealth managers and investors.
Table of Contents
Preface to the New Edition vii
CHAPTER 1 The Credit Decision 1
CHAPTER 2 The Credit Analyst 37
CHAPTER 3 The Business of Banking 87
CHAPTER 4 Deconstructing the Bank Income Statement 155
CHAPTER 5 Deconstructing a Bank’s Balance Sheet 215
CHAPTER 6 Earnings and Profitability 261
CHAPTER 7 Asset Quality 337
CHAPTER 8 Management and Corporate Governance 415
CHAPTER 9 Capital 449
CHAPTER 10 Liquidity 493
CHAPTER 11 Country and Sovereign Risk 551
CHAPTER 12 Risk Management, Basel Accords, and Ratings 641
CHAPTER 13 The Banking Regulatory Regime 717
CHAPTER 14 Crises: Banking, Financial, Twin, Economic, Debt, Sovereign, and Policy Crises 781
CHAPTER 15 The Resolution of Banking Crises 847
About the Authors 907
Index 909
