Asset And Liability Management: The Banker's Guide to Value Creation And Risk Control (Financial Times Series) [Hardcover]

Jean Dermine (Author), Youssef F. Bissada (Author), E. Mercier (Collaborator)

Book Description

ISBN-10: 027371001X | ISBN-13: 978-0273710011 | Publication Date: June 2007 | Edition: 2nd

Every banker who is in touch with their industry, and keen to progress, needs to know how banking activities contribute to value creation and how to ensure risks are controlled. They need to know how to evaluate performances on a risk-adjusted basis. And how to price loans to ensure they create value. Bankers' performance is increasingly evaluated against their value creation and so it is very much in their interests to be proficient in Asset & Liability Management (ALM), the control of value creation and risk. This book is a general overview by a world expert in ALM and is a concise and crystal clear presentation of the essential concepts. It is packaged with a step-by-step tutorial CD with exercises, solutions and an attractive visual focus. It is unique in covering both value creation and risk control (most other books cover only risk control) and the new edition will include new chapters on the two new topics it is now essential for bankers to know about: Basel II and credit derivatives.

Editorial Reviews

About the Author

Jean Dermine is Professor of Banking and Finance at INSEAD and Director of the Center for International Financial Services. He is a world expert on ALM with more than 20 years' experience of research, consulting and the executive education of bankers around the world. He is also co-author of the computer-based simulation ALCO Challenge. Youssef Bissada is founder and managing director of Bissada Management Simulations, a firm specialising in the development of computer-based learning tools.

Product Details

• Hardcover: 187 pages
• Publisher: Financial Times Management; 2nd edition (June 2007)
• Language: English
• ISBN-10: 027371001X
• ISBN-13: 978-0273710011
• Product Dimensions: 9.2 x 6.4 x 1.2 inches
• Shipping Weight: 1.3 pounds (View shipping rates and policies)
• Average Customer Review: 3.0 out of 5 stars  See all reviews (1 customer review)
• Amazon Best Sellers Rank: #1,197,512 in Books (See Top 100 in Books)

More About the Author

Discover books, learn about writers, read author blogs, and more.

Customer Reviews

Most Helpful Customer Reviews

1 of 1 people found the following review helpful:

3.0 out of 5 stars Very lightweight intro to ALM, October 13, 2010

By 

MrSherlockHolmes - See all my reviews

This review is from: Asset And Liability Management: The Banker's Guide to Value Creation And Risk Control (Financial Times Series) (Hardcover)

This is not a manual on ALM, nor does it pretend to be a treatise on the subject. It is a very simple introduction to ALM for those who require some understanding of the basic processes undermining modern ALM within Banks (and I suppose other financial institutions where Asset & Liability Management is a requirement).

Let me be clear here, if you think this is a textbook on ALM, you would be sadly mistaken. If the cartoons on every page aren't a giveaway, then perhaps the 3-4 pages devoted to Interest Rate Risk or Liquidity risk might give you some idea of how light the treatment is.

I think Dermine pitched the book too low, I mean do we really need cartoons in a book about financial risk management for banks? What was irritating as well was that the formulae were for the most part not generalized. So you had a worked example, but there was no abstraction to the general. I'm not saying that the general should have been derived and then proven, just that the general formula should have been presented so that you could apply it in other situations.

I find it hard to recommend this book. If you need to understand some of the concepts at a pretty high level, then maybe it might be useful. But if you are looking for a real treatment of ALM, then I suggest you look elsewhere.