Commercial Banking: The Management of Risk, 3rd Edition,9780471469490

Commercial Banking: The Management of Risk, 3rd Edition

by ;
Edition: 3rd
ISBN13: 9780471469490
ISBN10: 0471469491
Format: Hardcover
Pub. Date: 2004-08-01
Publisher(s): WILEY
List Price: $251.35

Buy New

Usually Ships in 3-4 Business Days
$251.10
Add to Cart

Rent Textbook

Select for Price
Add to Cart
There was a problem. Please try again later.

Used Textbook

We're Sorry
Sold Out

eTextbook

We're Sorry
Not Available

Buy from our Marketplace starting at $5.21

How Marketplace Works:

  • This item is offered by an independent seller and not shipped from our warehouse
  • Item details like edition and cover design may differ from our description; see seller's comments before ordering.
  • Sellers much confirm and ship within two business days; otherwise, the order will be cancelled and refunded.
  • Marketplace purchases cannot be returned to eCampus.com. Contact the seller directly for inquiries; if no response within two days, contact customer service.
  • Additional shipping costs apply to Marketplace purchases. Review shipping costs at checkout.

Summary

From the growth of electronic banking, to the rapid rise in overseas operations, to deregulation and recent laws, Gup and Kolari's Commercial Banking: The Management of Risk, Third Edition will help you understand these new realities and keep up with what's happening in the banking industry. With a strong emphasis on managing risk and maximizing profit, this up-to-date text provides a comprehensive, practical introduction to bank management and current banking practices used to control different kinds of risk. You'll examine the factors that affect the value of a bank and techniques for managing that value including the use of financial derivatives. You'll also explore the principal lending activities to businesses and individuals from the point of view of both the bank and the borrower.

Table of Contents

Preface xxvii
Acknowledgements xxix
Part I Introduction
1(94)
Functions and Forms of Banking
2(26)
What is a Bank?
3(1)
Definitions
3(4)
1781
3(1)
1863
4(1)
1956
4(1)
1987
4(1)
2004
5(2)
Number of Banks
7(1)
Types of Banks
8(1)
What Do Banks Do for Their Customers?
8(1)
Payments
9(1)
Financial Intermediation
9(1)
Deposit Function
10(1)
Loan Function
10(1)
Other Financial Services
10(1)
Off-Balance Sheet Activities
10(1)
Insurance and Securities Related Activities
11(1)
Trust Services
11(1)
Banks Are Private Firms with a Public Purpose
11(1)
Bank Risk Management
12(1)
Credit Risk
12(1)
Interest Rate Risk
12(1)
Operational Risk
12(1)
Liquidity Risk
12(1)
Price Risk
13(1)
Compliance Risk
13(1)
Foreign Exchange Risk
13(1)
Strategic Risk
13(1)
Reputation Risk
13(1)
Constraints
13(1)
Market Constraints
13(1)
Social Constraints
14(1)
Legal and Regulatory Constraints
14(1)
Sizes and Market Shares of Commercial Banks and Other Financial Service Firms
14(2)
Major Factors Affecting Banking and Market Shares
16(1)
Inflation and Volatile Interest Rates
17(1)
Securitization
17(1)
Technological Advances
18(1)
Consumers
18(1)
Deregulation
18(1)
Despecialization and Competition
19(1)
Globalization
19(1)
Money and Capital Markets
20(1)
Assets and Liabilities of Commercial Banks
21(1)
Assets
21(2)
Loans
21(2)
Investments
23(1)
Cash
23(1)
Other Assets
23(1)
Deposits
23(1)
Equity
23(1)
Bank Profitability
24(1)
Economic Growth
24(1)
Increased Risk
25(1)
Fee Income
25(1)
Efficiency
25(3)
Summary
25(1)
Key Terms and Concepts
26(1)
Questions
27(1)
Case
27(1)
The Bank Regulatory Environment
28(25)
Why Are Banks Regulated?
29(1)
Prevent Disruption of the Economy
29(1)
Domestic Economy
29(1)
Global Markets
29(1)
Guard Against Deposit Insurance Losses
30(1)
Social goals
30(1)
Why Banks Fail
31(1)
Credit Risk
31(1)
Bank Growth and Failure
32(2)
Bank Runs
34(1)
The Foundation of the Regulatory Framework
35(1)
The 1930S
35(1)
The McFadden Act of 1927
36(1)
The Banking Act of 1933 (Glass-Steagall Act)
36(1)
Securities Power
36(1)
Deposit Insurance
36(1)
The Banking Act of 1935
37(1)
Bank Reforms Since 1980
37(1)
Deregulation
38(1)
The Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA)
38(1)
The Garn-St. Germain Act of 1982
39(1)
The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA)
39(2)
Regulatory Structure
40(1)
Thrift Regulation
40(1)
Enforcement Powers
41(1)
The Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA)
41(1)
The Omnibus Budget Reconciliation Act of 1993
42(1)
The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994
42(1)
The Gramm-Leach-Bliley Act of 1999 (GLBA)
42(1)
Harmonization
43(2)
The Dual Banking System
45(1)
Bank Charter Type
45(1)
Bank and Financial Holding Companies
45(1)
What Bank Regulators Do
46(3)
Charter
46(1)
Regulate
46(1)
Supervise
46(1)
Examine
47(2)
Is Prudential Bank Regulation Effective?
49(4)
Summary
50(1)
Key Terms and Concepts
51(1)
Questions
52(1)
Case
52(1)
Evaluating Bank Performance
53(42)
A Framework for Evaluating Bank Performance
54(1)
Internal Performance
54(3)
Bank Planning
54(2)
Technology
56(1)
Personnel Development
57(1)
External Performance
57(1)
Market Share
57(1)
Regulatory Compliance
58(1)
Public Confidence
58(1)
Presentation of Bank Financial Statements
58(6)
The Balance Sheet
59(2)
The Income Statement
61(3)
Analyzing Bank Performance with Financial Ratios
64(1)
Profit Ratios
64(3)
ROE
64(1)
ROA
65(1)
Unraveling Profit Ratios
65(1)
Other Profit Measures
66(1)
Risk Ratios
67(28)
Capitalization
67(1)
Asset Quality
67(1)
Operating Efficiency
68(1)
Liquidity
69(1)
Other Financial Ratios
70(2)
Application of Financial Ratios to Evaluating the Performance of Wells Fargo
72(1)
Internal Performance Evaluation Based on Economic Profit
72(1)
Risk-Adjusted Return on Capital (RAROC)
73(3)
Economic Value Added (EVA)
76(1)
Summary
77(1)
Key Terms and Concepts
77(1)
Questions
78(1)
Problems
78(5)
Case
83(12)
Part II Asset Liability Management
95(80)
Bank Valuation
96(20)
Determining the Value of the Equity of a Commercial Bank
97(4)
Using the Price-Earnings Ratio
101(1)
Bank Merger and Acquisition Pricing
102(2)
Bank Earnings and Stock Prices: Which Earnings Matter?
104(1)
Deregulation and the Value of Bank Stocks
105(1)
Evidence from Market Responses to Bank M&A Announcements
106(2)
Long-Term Effects of Bank Mergers
108(1)
Strategies for Increasing Stock Price: The Bank Megamerger Wave
109(7)
Summary
111(1)
Key Terms and Concepts
112(1)
Questions
112(1)
Problems
113(1)
Case
113(3)
An Overview of Asset/Liability Management (ALM)
116(30)
Asset/Liability Management
117(1)
A Historical Perspective
118(2)
Alternatives in Managing Interest Rate Risk
120(1)
Balance Sheet Adjustments
120(1)
Off-Balance Sheet Adjustments
120(1)
Measuring Interest Rate Sensitivity and the Dollar Gap
121(1)
Classification of Assets and Liabilities
121(1)
Definition of the Dollar Gap
122(1)
Asset and Liability Sensitivity
123(1)
Gap, Interest Rates, and Profitability
123(1)
Incremental and Cumulative Gaps
124(1)
Gap Analysis: An Example
125(3)
Managing Interest Rate Risk with Dollar Gaps
128(1)
Balance Sheet Adjustments
128(1)
How Much Interest Rate Risk Is Acceptable?
128(2)
Aggressive Management
130(1)
Rising Interest Rates
130(1)
Falling Interest Rates
130(1)
Defensive Management
130(1)
Three Problems with Dollar Gap Management
131(2)
Time Horizon
131(1)
Correlation with the Market
131(2)
Focus on Net Interest Income
133(1)
Duration Gap Analysis
133(1)
Measurement of the Duration Gap
134(1)
Interest Rates, the Duration Gap, and the Value of Equity
135(1)
Defensive and Aggressive Duration Gap Management
136(2)
Problems with Duration Gap Management
138(1)
Simulation and Asset/Liability Management
138(1)
Correlation Among Risks
139(1)
Credit Risk
139(1)
Liquidity
139(7)
Summary
140(2)
Key Terms and Concepts
142(1)
Questions
142(1)
Problems
142(4)
Techniques of Asset/Liability Management: Futures, Options, and Swaps
146(29)
Financial Futures
146(1)
Using Financial Futures Markets to Manage Interest Rate Risk
146(1)
Nature of Futures Contracts
147(1)
Example of a Futures Transaction
148(1)
Techniques in Using Financial Futures
149(1)
Using Interest Rate Futures to Hedge a Dollar Gap Position
149(2)
Balance Sheet Hedging Example
150(1)
Using Interest Rate Futures to Hedge a Duration Gap
151(1)
Steps Involved in Hedging
152(1)
Perfect and Imperfect Futures Short Hedges
153(1)
Complications in Using Financial Futures
154(1)
Using Futures Contracts to Manage Currency Risk
155(1)
Using Futures Contracts to Manage Stock Market Risk
155(1)
Using Forward Contracts Instead of Futures Contracts
155(1)
Options
156(1)
Characteristics of Options
156(2)
Payoffs for Options Contracts
158(1)
Hedging the Dollar Gap with Option and Futures Option Contracts
158(2)
Micro and Macro Hedges
160(1)
Caps and Floors
160(2)
Interest Rate Swaps
162(3)
Interest Rate Swaps, the Quality Spread, and the Cost of Funds
165(2)
Swaps and Futures
167(8)
Summary
169(1)
Key Terms and Concepts
169(1)
Questions
169(1)
Problems
170(3)
Case
173(2)
Part III Investment, Lending, and Liquidity Management
175(32)
Investment Management
176(31)
Developing Investment Policies and Goals
177(4)
Types of Investment Securities
181(1)
U.S. Government and Agency Securities
181(2)
U.S. Treasury Securities
181(1)
Agency Securities
182(1)
Municipal Bonds
183(2)
Taxes
183(2)
Corporate Bonds
185(1)
Recent Portfolio Composition
185(2)
Evaluating Investment Risk
187(1)
Security-Specific Risk
187(9)
Default Risk
187(2)
Bondholder Losses in Default
189(1)
Bond Prices and Default Risk
189(1)
Price Risk
190(5)
Marketability Risk
195(1)
Call Risk
196(1)
Portfolio Risk
196(1)
Inflation Risk
196(1)
Investment Strategies
197(1)
Passive Investment Strategies
197(1)
Spaced-Maturity Approach
197(1)
Split-Maturity Approach
198(1)
Aggressive Investment Strategies
198(9)
Yield-Curve Strategies
198(1)
Bond-Swapping Strategies
199(2)
Summary
201(1)
Key Terms and Concepts
201(1)
Questions
201(2)
Problems
203(2)
Case
205(2)
Appendix 7A Investment Policy of a Major U.S. Bank
207(4)
Appendix 7B Modern Portfolio Theory and Bank Securities Management
211(68)
Measuring Expected Rates of Return
211(1)
Measuring Variability
212(1)
Portfolio Effects
212(4)
Credit Evaluation Process
216(30)
Credit Scoring
217(1)
Consumer Credit and Home Mortgage Loans
217(2)
Small Businesses
219(1)
Large Businesses
219(1)
Credit Ratings
220(1)
Financial Analysis
220(1)
Different Perspectives
220(1)
Quality of the Data
221(1)
Effects of Inflation
222(1)
Comparisons Are Relative
222(2)
Historical Trends
223(1)
Comparisons with Other Firms and Life Cycle Considerations
223(1)
Average Data
223(1)
LIFO/FIFO
223(1)
Ratio Analysis
224(1)
Balance Sheet
225(1)
Income Statement
225(1)
Average versus Year-End Data
226(2)
Profitability Ratios
228(4)
Return on Assets
228(1)
Return on Equity
229(1)
Net Profit Margin
230(1)
Earnings per Share
230(1)
Dividend Payout Ratio
231(1)
Liquidity Ratios and Measures
232(2)
Net Working Capital
232(1)
Current Ratio
232(1)
Acid Test Ratio
232(1)
Average Collection Period
233(1)
Average Payment Period
234(1)
Measuring Efficiency
234(2)
Inventory Turnover Ratio
234(1)
Age of Inventory
235(1)
Asset Turnover Ratio
235(1)
Financial Leverage
236(1)
Debt Ratio
236(1)
Long-term Debt as a Percentage of Total Capital
236(1)
Times Interest Earned
237(1)
Review of Financial Indicators
237(1)
Common-Size Statement Analysis
237(1)
Balance Sheet
237(4)
Income Statement
241(5)
Summary
242(1)
Key Terms and Concepts
242(1)
Questions
243(1)
Problems
243(3)
Commercial and Industrial Lending
246(33)
The Role of Asymmetric Information in Lending
246(1)
Asymmetric Information and Adverse Selection
246(1)
Adverse Selection
247(1)
Moral Hazard
247(1)
The Competitive Environment
247(1)
The Business of Lending
247(1)
Increasing Competition
248(1)
Changes in Technology
249(1)
Securitization
249(1)
Unbundling of Loans
250(1)
Credit Scoring
250(1)
Online Banking and Financial Services
250(1)
The Board of Directors' Written Loan Policy
250(1)
The Role of Directors
250(1)
Reducing Credit Risk
251(2)
Seven Ways to Make Loans
253(1)
Banks Solicit Loans
253(1)
Buying Loans
254(1)
Commitments
254(1)
Customer-Request Loans
255(1)
Loan Brokers
255(1)
Overdrafts
255(1)
Refinancing
256(1)
Collecting Loans
256(1)
Principal Lending Activities
256(1)
Line of Credit
257(1)
Revolving Loan
257(1)
Term Loan
258(1)
Bridge Loan
258(1)
Asset-Based Lending
258(2)
Leasing
260(1)
Collateral
260(1)
Characteristics of Good Collateral
260(1)
Durability
260(1)
Identification
260(1)
Marketability
261(1)
Stability of Value
261(1)
Standardization
261(1)
Types of Collateral
261(2)
Accounts Receivable
261(1)
Inventory
262(1)
Marketable Securities
262(1)
Real Property and Equipment
262(1)
Guarantees
262(1)
The Lending Process
263(1)
Evaluating a Loan Request
263(1)
Character
263(1)
Capacity
263(1)
Capital
264(1)
Collateral
264(1)
Conditions
264(1)
Compliance
264(1)
Structuring Commercial Loan Agreements
264(1)
Pricing Commercial Loans
265(6)
How to Calculate Effective Yield
265(2)
Effect of Payment Frequency on Interest Earned and Yields
267(1)
Loan Pricing
267(1)
Return on Net Funds Employed
268(1)
Profit Goal
268(1)
Loan Expense
269(1)
Net Bank Funds Employed
269(1)
Relationship Pricing
270(1)
Minimum Spread
270(1)
Average Cost versus Marginal Cost
270(1)
Performance Pricing
271(1)
Monitoring and Loan Review
271(1)
Payoffs or Losses?
271(8)
Summary
271(1)
Key Terms and Concepts
272(1)
Questions
273(1)
Problems
274(1)
Case
275(4)
Appendix 9A The Cost of Capital
279(62)
Real Estate and Consumer Lending
281(31)
Real Estate Lending
281(1)
Mortgage Debt Outstanding
281(2)
Characteristics of Mortgage Loans
283(1)
The Real Estate Portfolio
284(1)
Collateral
284(1)
Residential Mortgage Loans
285(5)
Fixed-Rate Mortgages
286(1)
Monthly Mortgage Payments
286(2)
Maturity
288(1)
Principal and Interest
288(1)
Adjustable-Rate Mortgages
288(1)
Index
289(1)
Caps
289(1)
Margin
289(1)
Rates
289(1)
Shifting the Risk
290(1)
Additional Terms
290(2)
Assumable Mortgage
290(1)
Buydown
290(1)
Due-on-Sale Clause
290(1)
Late Charges
290(1)
Mortgage Insurance
291(1)
Points
291(1)
Settlement Charges
291(1)
Alternative Mortgage Instruments
292(2)
Balloon Mortgage
292(1)
Graduated Payment Mortgage
292(1)
Growing Equity Mortgage
292(1)
Interest-Only Mortgage
292(1)
Shared Appreciation Mortgage
293(1)
Reverse Mortgage
293(1)
Second Mortgage/Home Equity Loan
293(1)
Technology
294(1)
Commercial Real Estate Loans
294(1)
Consumer Lending
295(1)
Types of Consumer Loans
296(5)
Automobile Loans
296(1)
Revolving Consumer Loans
297(1)
Credit Cards
298(2)
Mobile Home Loans
300(1)
Noninstallment Loans
300(1)
Leases
301(1)
Finance Charges
302(1)
Adjusted Balance Method
302(1)
Previous Balance Method
303(1)
Average Daily Balance Method Excluding Current Transactions
303(1)
Average Daily Balance Method Including Current Transactions
303(1)
Annual Percentage Rate
303(3)
Single Payment, End of Period
303(1)
Monthly Amortization
304(1)
Add-on Loan Rate
305(1)
Discount Loan Rate
305(1)
Real Estate and Consumer Credit Regulation
306(6)
Community Reinvestment Act
306(1)
Equal Credit Opportunity Act and the Fair Housing Act
306(1)
Fair Credit Billing Act
307(1)
Home Mortgage Disclosure Act
307(1)
Real Estate Settlement Procedures Act
307(1)
Truth in Lending Act
307(1)
If Credit Is Denied
307(1)
Privacy Issues
308(1)
Summary
308(1)
Key Terms and Concepts
309(1)
Questions
309(1)
Problems
310(1)
Case
311(1)
Liquidity Management
312(29)
Estimating Liquidity Needs
313(1)
Sources and Uses of Funds Method
314(2)
Structure-of-Deposits Method
316(1)
Funding and Market Liquidity Needs
317(1)
Asset Liquidity
317(1)
Role of Asset Liquidity
318(1)
Primary Reserves
318(1)
Managing the Money Position
319(3)
Transactions Accounts
320(1)
Nonpersonal Time Deposits
321(1)
Eurocurrency Liabilities
321(1)
Secondary Reserves
322(3)
Liability Management
325(2)
Funds Management of Liquidity
327(1)
Liquidity Ratios
327(2)
Optimum Bank Liquidity
329(2)
Regulatory View of Bank Liquidity
331(3)
Bank Liquidity: A Hypothetical Example
334(7)
Summary
335(1)
Key Terms and Concepts
336(1)
Questions
336(1)
Problems
337(2)
Case
339(2)
Part IV Capital, Liabilities, and Off-Balance Sheet Management
341(88)
Capital Management
342(30)
Definition of Bank Capital
342(1)
Equity
343(1)
Long-Term Debt
343(1)
Reserves
344(1)
Role of Bank Capital
345(1)
Depository Institution Failures and Capital
345(1)
Capital Adequacy
346(1)
Regulators' Viewpoint
346(1)
Capital Standards
347(1)
Uniform Capital Requirements
348(1)
Risk-Adjusted Capital Requirements
348(9)
FDIC
357(2)
Shareholders' Viewpoint
359(1)
Financial Risk and Share Valuation
359(3)
Corporate Control
362(1)
Market Timing
362(1)
Asset Investment Considerations
363(1)
Dividend Policy
363(1)
Debt Capacity
364(1)
Transactions Costs
364(1)
Mergers and Acquisitions
364(1)
Internal Expansion
365(1)
Trends in Bank Capital
365(7)
Summary
367(1)
Key Terms and Concepts
368(1)
Questions
369(1)
Problems
370(1)
Case
371(1)
Liabilities Management
372(30)
Structure of Bank Liabilities
373(1)
Deposit Sources of Funds
373(5)
Checkable Deposits
373(2)
Small Time and Savings Deposits
375(1)
Large Time Deposits
376(1)
Eurodollar Deposits
377(1)
Brokered Deposits
377(1)
IRA and Keogh Plans
378(1)
Nondeposit Sources of Funds
378(5)
Federal Funds
379(1)
Repurchase Agreements
380(1)
Discount Window Advances
380(1)
Federal Home Loan Bank Borrowings
381(1)
Banker's Acceptances
381(1)
Commercial Paper
382(1)
Capital Notes and Debentures
382(1)
Balance Sheet Structure of Bank Liabilities
383(3)
Managing Bank Liabilities
386(1)
Formulating Pricing Policy
387(1)
Deposit Pricing Matrix
387(1)
The Pricing Committee
388(1)
Components of the Pricing Decision
388(1)
Profitability and Deposit Pricing
389(1)
Lending and Deposit Costs
390(1)
Customer Relationship Pricing
390(1)
Promotional Pricing
391(1)
Other Marketing Elements Related to Pricing
391(1)
Product Differentiation
391(1)
Distribution
391(1)
Estimating the Costs of Bank Funds
391(1)
Cost Definitions
391(1)
Weighted-Average Cost of Funds
391(1)
Purposes of Cost Analyses
392(2)
Performance Reports
392(2)
Marginal Costs of Funds
394(8)
Investment Decisions
395(1)
Summary
396(1)
Key Terms and Concepts
397(1)
Questions
397(1)
Problems
398(2)
Case
400(2)
Off-Balance-Sheet Activities
402(27)
Financial Guarantees
403(1)
Standby Letters of Credit
403(3)
Uses of Standby Letters of Credit
404(1)
Risk
405(1)
Pricing
406(1)
Bank Loan Commitments
406(2)
Line of Credit
406(1)
Revolving Loan Commitments
407(1)
Funding Risk
408(1)
Note Issuance Facilities
408(1)
Euronotes
408(1)
Arrangers and Tender Panels
409(1)
Derivatives
409(4)
Currency and Interest Rate Swaps
413(1)
Types of Swaps
413(1)
Example of a Swap
413(2)
Risks Associated with Swaps
415(2)
Over-the-Counter Options, Futures, and Forwards
417(1)
Over-the-Counter Options
417(1)
Floor-Ceiling Agreements
417(2)
Forward Rate Agreements
419(1)
Synthetic Loans
419(2)
Securitization
421(1)
Other Off-Balance-Sheet Activities
422(1)
Loan Sales
422(1)
Trade Finance
422(1)
Commercial Letters of Credit
422(1)
Acceptance Participations
423(1)
Foreign Exchange
423(1)
Services for Fees
423(1)
Cash Management
424(1)
Networking
424(1)
U.S. Banks and International Expansion
424(5)
Summary
425(1)
Key Terms and Concepts
426(1)
Questions
426(1)
Problems
427(1)
Case
428(1)
Part V Domestic and International Financial Services
429(30)
Securities, Investment, and Insurance Services
430(16)
Consolidation and Convergence of Financial Services
430(2)
Financial Intermediaries
432(1)
Intermediation
432(1)
Benefits of Intermediation
433(1)
Business Concerns
433(1)
Individuals
434(1)
Financial Intermediaries
435(1)
Insurance Companies
436(1)
Life Insurance
436(2)
Life Insurance Companies
438(1)
Property/Casualty Insurance
439(1)
Securities Brokers/Dealers and Investment Banking
439(2)
Mutual Funds
441(5)
Summary
443(1)
Key Terms and Concepts
444(1)
Questions
444(2)
Other Financial Services
446(13)
Cash Management Services
447(1)
Cash Concentration for Collection of Funds
447(1)
Controlled Disbursement
447(1)
Lock Boxes for Collections
447(1)
Trade Finance
448(1)
Data Processing and Related Services
448(1)
FDIC-Insured Deposits
449(1)
Investment Products
449(1)
Annuities
450(1)
Sweep Accounts
450(1)
Syndication/Shared National Credits (SNCS)
450(1)
Private Wealth Management
451(2)
Trust Services
453(1)
Types of Trusts
454(5)
Business
454(1)
Real Estate Investment Trusts (REITS)
455(1)
Trust Company
455(1)
Revocable Living Trust
456(1)
Credit Shelter Trust
456(1)
Marital Trust
456(1)
Irrevocable Trust
456(1)
Other Types of Trusts
456(1)
Summary
457(1)
Key Terms and Concepts
457(1)
Questions
457(1)
Case
458(1)
Appendix 16A FDIC Insurance Coverage
459(44)
True or False?
459(2)
Electronic Banking
461(17)
Retail Payments and Financial Services
461(2)
Electronic Banking Services
463(1)
Retail Services
463(1)
Wholesale Services
464(1)
Electronic Banking
465(1)
Internet Banking
465(1)
Automated Teller Machines
466(1)
Electronic Bill Presentment and Payment (EBPP)
467(3)
Electronic Funds Transfer (EFT)
469(1)
Electronic Money
470(2)
Advantages and Disadvantages
471(1)
Seigniorage
471(1)
Home Mortgage Loans Over the Internet
472(1)
Large-Dollar Transfers
472(1)
Fedwire
473(1)
Chips
473(1)
Swift
474(1)
Foreign Exchange
475(3)
Summary
475(1)
Key Terms and Concepts
476(1)
Questions
476(1)
Case
477(1)
Global Financial Services
478(25)
Why and How U.S. Banks Engage in International Banking
478(1)
Why Engage in International Banking?
478(1)
Correspondent Banking
479(1)
Foreign Branches
479(1)
Representative Offices
479(1)
Foreign Affiliates
480(1)
Edge Act Offices
480(1)
International Banking Facilities
480(1)
Foreign Banks in the United States
481(1)
Agency
481(1)
Branch
481(1)
Investment Company
481(1)
Subsidiary
482(1)
Finance Companies
482(1)
Financial Holding Companies
482(2)
International Lending
484(1)
Syndicated Loans
484(1)
The Syndication Process
484(1)
Loan Pricing
485(1)
Letters of Credit
485(1)
Import Letters of Credit
485(2)
Bill of Lading
487(1)
Other Documents
487(1)
Confirmed Letters of Credit
487(1)
Collection
488(1)
Clean Collections
488(1)
Documentary Collections
488(1)
Foreign Exchange Markets
489(1)
Foreign Exchange
489(1)
Exchange Rates
490(2)
Direct and Indirect Exchange Rates
491(1)
Cross-Rate
492(1)
Foreign Exchange Transactions
492(2)
Spot Market
492(1)
Forward Markets
492(1)
Method of Transaction
493(1)
Contracts
494(1)
Maturity
494(1)
Foreign Exchange Risks
494(1)
Exchange Rate Risk
495(1)
Interest Rate Risk
495(1)
Arbitrage
496(1)
Credit Risk
497(1)
Country Risk
498(5)
Summary
499(1)
Key Terms and Concepts
499(1)
Questions
500(1)
Problems
500(1)
Case
501(2)
Glossary 503(24)
Index 527

An electronic version of this book is available through VitalSource.

This book is viewable on PC, Mac, iPhone, iPad, iPod Touch, and most smartphones.

By purchasing, you will be able to view this book online, as well as download it, for the chosen number of days.

Digital License

You are licensing a digital product for a set duration. Durations are set forth in the product description, with "Lifetime" typically meaning five (5) years of online access and permanent download to a supported device. All licenses are non-transferable.

More details can be found here.

A downloadable version of this book is available through the eCampus Reader or compatible Adobe readers.

Applications are available on iOS, Android, PC, Mac, and Windows Mobile platforms.

Please view the compatibility matrix prior to purchase.