Commercial Banking: Distinct Value, Roles, and Methods is a thorough, applied, and accessible introduction to the modern theory and practice of financial intermediation as enabled by commercial banks. This textbook considers key issues in banking, regulation, coping with bank risk, competition amongst banks, global banking, careers in banking, and future directions. Throughout the book, emphasis is placed on differentiating between bank and non-bank financial firms, the impact of technology on banking, evolving regulatory environments, the economic importance of banking, and innovation in banking services.
Perfect for undergraduate, graduate level, and professional courses in banking, bank management, and commercial banking, this book is reinforced with full-color figures, charts, tables, learning objectives, and key term definitions, as well as lecture slides hosted on an accompany instructor site to support teaching and understanding.
Perfect for undergraduate, graduate level, and professional courses in banking, bank management, and commercial banking, this book is reinforced with full-color figures, charts, tables, learning objectives, and key term definitions, as well as lecture slides hosted on an accompany instructor site to support teaching and understanding.
Table of Contents
Part I. The value, roles, and methods of banking1. What Do Banks Do?
2. The Main Roles of Banking
3. The Main Methods of Banking
4. The Originate-to-Distribute (OTD) Model
Part II. Key issues in banking
5. Systemic Risks, Cycles, and Crises
6. Systemically Important Banks
7. Central Banking
8. Banking in the U.S.
9. International Banking
Part Ill. Coping with bank risk for bank managers and prudential authorities
10. How Risks Are Managed
11. Interest Rate Risks and Other Market Risks
12. Credit Risk
13. Operational Risk
14. Liquidity Risk
15. Leverage Risk
16. Suggestions for Improving Risk Management
Part IV. Banking competition
17. Static Competition with Other Banks
18. Static Competition with Other Financial Institutions and Markets
19. Dynamic Competition for Innovation in Banking
Part V. Banking topics of the future
20. Distinct Value in the Digital Future Banks Versus Digital Financial Firms (DFFs)
21. The "Expect the Unexpected" Framework for Banking Policy
Authors
Allen N. Berger Professor in Banking and Finance, University of South Carolina, President, Financial Intermediation Research Society, Senior Fellow, Wharton Financial Institutions Center, and Fellow of the European Banking Center, SC, USA. Allen N. Berger is H. Montague Osteen, Jr., Professor in Banking and Finance at the University of South Carolina, President of the Financial Intermediation Research Society, Senior Fellow at the Wharton Financial Institutions Center, and Fellow of the European Banking Center.He has published over 125 articles in refereed journals, including in top finance journals, Journal of Finance, Journal of Financial Economics, and top economics journals, Journal of Political Economy and American Economic Review. He is co-author of two research books and co-edited all three editions of the Oxford Handbook of Banking. He serves on nine journal editorial boards, co-edited eight special issues of research journals, and formerly edited the Journal of Money, Credit, and Banking.
His research has been cited over 90,000 times, including 30 articles with over 1,000 citations each, and another 19 with over 500 citations each. He has given invited keynote addresses on five continents. Stephen Karolyi Senior Economic Advisor in the Supervision Risk and Analysis Department of the Office of the Comptroller of the Currency, U.S. Department of the Treasury, USA. Stephen A. Karolyi is a Senior Economic Advisor in the Supervision Risk and Analysis Department of the Office of the Comptroller of the Currency, U.S. Department of the Treasury. In his current position, his primary responsibility is to manage research activities of the agency, including seminars and conferences, and to direct research working groups of economists in support of agency-wide initiatives. Before joining the OCC in 2020, he earned his Ph.D. in Financial Economics from Yale University in 2014 and taught undergraduate and graduate courses in finance, accounting, and applied econometric methods at Carnegie Mellon University's Tepper School of Business. He is a Vice-President and member of the Executive Committee of the International Banking, Economics, and Finance Association. Raluca A. Roman Senior Economist, Federal Reserve Bank of Philadelphia; formerly Federal Reserve Bank of Kansas City, KS, USA. Raluca A. Roman is Senior Economist at the Federal Reserve Bank of Philadelphia, and formerly at the Federal Reserve Bank of Kansas City. She holds a Ph.D. in Finance from University of South Carolina. Her research areas include banking and financial institutions consumer finance, corporate finance, and international finance. She has published articles in the Journal of Financial and Quantitative Analysis, Management Science, Journal of Financial Intermediation, Journal of Money, Credit, and Banking, Financial Management, Journal of Corporate Finance, Journal of International Money and Finance, Journal of Banking and Finance, and has received four awards for her papers at conferences. She also co-authored the book TARP and other Bank Bailouts and Bail-Ins around the World: Connecting Wall Street, Main Street, and the Financial System (2020, Elsevier). Raluca has presented her research and discussed the research of others at numerous finance and regulatory conferences.
