Financial Institutions Management A Risk Management Approach

Saunders and CornettĹźs Financial Institutions Management: A Risk Management Approach 5/e focuses on managing return and risk in modern financial institutions. The central theme is that the risks faced by financial institutions managers and the methods and markets through which these risks are managed are becoming increasingly similar whether an institution is chartered as a commercial bank, a savings bank, an investment bank, or an insurance company. Although the traditional nature of each sectorĹźs product activity is analyzed, a greater emphasis is placed on new areas of activities such as asset securitization, off-balance-sheet banking, and international banking.Ethical controversies: In-chapter discussions of the many ethical controversies involving financial institutions (such as those involving commercial banks, investment banks, and mutual funds) have been added to most chapters.|Ethical Dilemmas boxes: Ethical Dilemmas boxes have been added to many chapter which highlight specific news stories relating to the ethical controversies involving financial institutions in the early 2000s.|New capital adequacy rules: The latest information pertaining to new capital adequacy rules (or Basel II), which are scheduled for implementation at the end of 2006, has been added to Chapter 20. The latest changes to deposit insurance premiums charged to financial institutions, insurance coverage for financial institutions customers, and the Federal ReserveĹźs discount window lending programs are discussed in Chapter 19.|The impact of the economic slowdown, the subsequent economic recovery in the U.S. and worldwide, and the impact of historically low interest rates on financial institutions is highlighted and discussed. |Bank mergers: The impact of the newest wave of bank mergers (domestic and international) is highlighted in Chapters 22 through 24.|A discussion of the controversy surrounding the federal governmentĹźs implicit backing of Fannie Mae and Freddie Mac and the impact the increased level of risk in these two agencies posed to the U.S. economy in the early 2000s is added to Chapter 28. |Updated tables and figures: Tables and figures in all chapters have been revised to include the most recently available data.|Enhanced and updated international discussions: Sections of the text that include a discussion of international issues and events are highlighted. These sections have been updated to contain the most recent issues pertaining to financial institutions worldwide.|Appendices moved to text website: Appendices for Chapters 8, 11, 18, and 25 are available on the bookĹźs website at www.mhhe.com/saunders5e. The presence of an online appendix is specifically noted in the end-of-chapter material.|Enhanced Internet problems: Internet problems included in the end-of-chapter problems have been substantially enhanced. These problems now guide the student through the web site as they collect the requested data. Further, these problems now ask the student to evaluate the data collected at the web site.|Internet exercises added: Internet exercises have been added to the body of various chapters. These exercises guide the student to access the most recent data on the Web as it is discussed in the body of the Chapter.|S&P Market Insight problems added: S&P Market Insight problems have been added to the end-of-chapter problems. These problems require the use of the Educational Version of Market Insight, a Standard and PoorĹźs CompustatĹ˝ data base. Over 600 companies and key financial data are available as a problem solving resource, of which over 100 are financial institutions.|Chapter Notation online: Chapter Notation used in each chapter has been summarized and added to the bookĹźs web site (located at www.mhhe.com/saunders5e). These have been summarized and are listed by chapter at the web site.|A risk approach: Financial Institutions Management uses a risk approach, keeping the first section of the text as an introduction and the last two sections as a risk measurement and risk management summary, respectively.|Continuing detailed coverage of whatĹźs new: A detailed look at what is new in each of the different sectors of the financial institutions industry is presented in the first six chapters of the text. We have highlighted the continued international coverage with a global issues section icon located throughout the text.|The Financial Services Modernization Act of 1999: The continuing effect of the Financial Services Modernization Act of 1999 on financial institutions is detailed in several chapters. |Electronic technology and the Internet: Coverage of electronic technology and the InternetĹźs impact on financial services is included in Chapter 14. Technological changes occurring over the last decade have changed the way financial institutions offer services to customers, both domestically and overseas. The effect of technology is also referenced in other chapters where relevant. |Credit Risk models: Coverage of Credit Risk models (including newer models, such as KMV, CreditMetrics, and CreditRisk+) are included in the text.|The paths of banking: Coverage in the ĹźProduct DiversificationĹź chapter and the ĹźGeographic DiversificationĹź chapter continues to explore the increased inroads of banks into the insurance field, the move towards nationwide banking (in the United States), and the rapid growth of foreign banks and other intermediaries in the United States.|Highlighted in-chapter examples are located throughout in the chapters.|Updated Technology in the News boxes continue to discuss how technology and the Internet are affecting financial institutions as an industry. |Internet references are featured throughout each chapter as well as at the end of each chapter, and Internet questions are found after the end-of-chapter questions.