Bank Management [Hardcover]

Timothy W. Koch (Author), S. Scott MacDonald (Author)

Book Description

Publication Date: August 16, 2005 | ISBN-10: 0324289278 | ISBN-13: 978-0324289275 | Edition: 6

The concept of risk management serves as the unifying theme. A bank's asset and liability management committee (ALCO) or risk management committee is responsible for the overall financial planning and management of the bank's profitability and risk profile. The book emphasizes how managers can develop and implement strategies to maximize stockholders' wealth by balancing the trade-off between banking risks and returns. One of the book's primary purposes is to explain how market risk (interest rate risk, equity price risk, and foreign exchange rate risk), liquidity risk, credit risk, capital/solvency risk and operational risk are measured and how decisions to alter a bank's risk profile affects profitability and growth opportunities. The book demonstrates how risk management decisions in different areas affect each other and the overall profitability and risk of the institution.

Editorial Reviews

About the Author

Tim Koch holds the South Carolina Bankers Association Chair of Banking and is Professor of Finance at the Moore School of Business, University of South Carolina. He has written extensively on bank management topics, the pricing of fixed-income securities and derivatives, and the performance of financial services companies. He has published articles in the Journal of Finance, Journal of Money, Credit, and Banking, Journal of Financial & Quantitative Analysis, Journal of Banking & Finance, National Tax Journal, Journal of Futures Markets, and many others. Professor Koch has taught at the nation's leading graduate schools of banking, including Stonier, GSB at LSU, GSB at Wisconsin, the Southwestern Graduate School of Banking, the Pacific Coast Banking School, and the Graduate School of Banking at Colorado, where he currently serves as President.

S. Scott MacDonald is president and CEO, Southwestern Graduate School of Banking (SWGSB) Foundation; director, Assemblies for Bank Directors; and Adjunct Professor, Cox School of Business, Southern Methodist University. He received his B.A. degree in economics from the University of Alabama and his Ph.D. from Texas A&M University. Dr. MacDonald joined the Southern Methodist University faculty as a visiting professor of Finance in 1997. He was chosen to take over as director of the SWGSB Foundation in 1998. Prior to joining SMU, he was an associate professor of Finance and director of the School of Applied Banking at Texas Tech University. He also served as assistant director of Business and Financial Analysis at RRC Inc., a research consulting firm, before joining the Texas Tech faculty.

The recipient of numerous teaching and research awards, Dr. MacDonald is a frequent speaker and consultant to banks, banker associations, banking schools and other professional programs throughout the United States. He has served as an expert resource witness before the Texas State Senate and the FDIC. He has served as Chairman of the Board of Directors, Texas Tech Federal Credit Union and as an advisory board member of the Independent Bankers Association of Texas, Education Council. Dr. MacDonald is the author of many articles in journals such as the Journal of Financial Economics, The Journal of Business, The Journal of Futures Markets, The Review of Futures Markets, Quarterly Journal of Business and Economics, and the Journal of Money, Credit and Banking. He is also the author of curriculum materials for the Independent Bankers Association, The Assemblies for Bank Directors, and other professional banking programs. --This text refers to an out of print or unavailable edition of this title.

Product Details

• Hardcover: 762 pages
• Publisher: South-Western College Pub; 6 edition (August 16, 2005)
• Language: English
• ISBN-10: 0324289278
• ISBN-13: 978-0324289275
• Product Dimensions: 10.2 x 8.3 x 1 inches
• Shipping Weight: 2.8 pounds (View shipping rates and policies)
• Average Customer Review: 2.8 out of 5 stars  See all reviews (11 customer reviews)
• Amazon Best Sellers Rank: #819,166 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

27 of 28 people found the following review helpful:

5.0 out of 5 stars This book motivated my carreer as a banker, March 1, 2002

By 

Juan Mendoza (Guayaquil, Ecuador) - See all my reviews

This review is from: Bank Management (Hardcover)

Professor Koch's book is excellent. I highly recommend it to anyone who is interested in banking. The book is great to read if you don't know much about the industry or if you are an expert. I studied with Professor Koch at USC at the undergrad level and decided to go into banking thanks to his class and book. The book covers liquidity management, credit management, capital management, asset and liability management (focus on interest rate risk management), balance sheet analysis and other interestig topics. I've worked in several areas of commercial banks in Ecuador, namely credit, treasury, asset and liability management and finance. The book has always come in handy. I've also used it to teach at the University level down here.
It is especially interesting how every chapter is related in some way to the ALCO (Asset and Liability Management Commitee).
The cases are also very interesting. In Ecuador we recently had a liquidity crunch in the banking system. I was very much surprised to find an anylisis of a case very similar to what was happening down here in the book. The case was on the Contintental Illinois bank failure.
In other words, I think this book is a must for anyone interested in the industry.

33 of 38 people found the following review helpful:

2.0 out of 5 stars Revised Opinion - AVOID, January 12, 2001

By 

Erich Riesenberg - See all my reviews

This review is from: Bank Management (Hardcover)

This is an update of a prior review I wrote of this book, I changed my mind. I hadn't read the entire book but had been impressed with what I had read. The book does cover many aspects of commercial banking including regulations, capital and liquidity management, things of most interst to me as an analyst. However, a significant problem is that many of the examples used appear to be incorrect. For instance, the text often does not match the accompanying exhibits or tables. Perhaps the book was not edited well during an update to a new edition, and either the text or the exhibit/table was updated but not both (ie, in numerous cases they disagree). Whatever the reason, the numerous typographical errors made the book difficult to read, especially in a "self-study" situation. I'm looking elsewhere for a better guide.

21 of 25 people found the following review helpful:

5.0 out of 5 stars A "Must Read" for Anyone in Banking & Finance. Outstanding!, August 30, 1999

By A Customer

This review is from: Bank Management (Hardcover)

I've been in banking education for almost 18 years and a vast library of texts have crossed my desk. This fourth edition of Bank Management is vastly superior to anything I've seen to date. Will become an industry standard or should. Comprehensive, but not tedious. Well researched. Information rich. Authors Koch and MacDonald--who obviously are at the top of their game--have made it understandable to expert and novice alike. I found the "Contemporary Issues" sidebars in each chapter especially fascinating and instructive. This is one book that will be feathered with post-it notes--to mark the pages that you want to return to time and again.