Asset & Liability Management: A Guide to Value Creation and Risk Control - Hardcover

Dermine, Jean; Bissada, Youssef F.

Hardcover

ISBN 10: 0273656562 ISBN 13: 9780273656562

Publisher: Financial Times/ Prentice Hall, 2002

Synopsis

As institutional shareholders increase pressure on value creation and as central banks around the world are forcing banks to improve their ALM capabilities, the time has come for every banker to master the tools of Asset and Liability Management, and the control of value creation and risk.

Written for a general business audience by Jean Dermine, an INSEAD expert, Asset and Liability Management is a complete toolbox for those wishing to get to grips with the subject. Unique in its concise, clear and accessible presentation of the concepts, the book steers clear of complex mathematics and presents the tools in an intuitive and simple way by using modern, visual, educational techniques.

The book sheds light on questions such as:

• how do the various pieces of the bank puzzle fit with one another?
• how does each piece of the bank contribute to value creation?
• how does one ensure that risks are being controlled?
• how do you evaluate performances on a risk-adjusted basis?
• how do you price loans to secure the creation of value?

It also includes discussions on profit-centre management, pricing credit risk and loan provisioning, and the management of interest rate and liquidity risks.

Threading through the book are a set of exercises with solutions to measure understanding of the concepts as they build on each other.

Packaged with the book is a step-by-step tutorial CD-ROM that focuses on visuals, and exercises with built-in solutions. This can be used as a stand-alone self-learning device or as a tool after reading the book to test and reinforce the concepts learnt.

 

About this title

About the Author

Jean Dermine is Professor of Banking and Finance at INSEAD, and Director of the INSEAD Center in International Financial Services (CIFS).  He has more than 20 years' of research and consulting experience in the field of ALM, and has directed programmes for bankers around the world. Youssef Bissada is owner and chairman of Bissada Management Simulations, a company specialising in the development of computer-aided educational packages.  He started his career at INSEAD in 1969, and now works as a consultant for numerous international organisations and corporations.

From the Back Cover

As deregulation and competition are reducing margins around the world, the need for knowledge on Asset & Liability Management - the control of a bank’s profit and risks - becomes an absolute necessity for any banker in charge of a profit center, central bankers in charge of bank supervision, and banks’ auditors, consultants, or lawyers.

This is the first book on Asset and Liability Management that emphasises both risk control and value creation. It is written for non-specialist bankers in a concise and accessible style by a world authority on ALM who has more than 20-years executive-education experience with international bankers.

Although ALM appears complex, there are in fact few key concepts to master and assuming no previous knowledge of the subject, this book guides you through the basics of Asset and Liability Management to more advanced issues.

Packaged with the book is a step-by-step tutorial CD-ROM that focuses on visuals, and exercises with built-in solutions. This can be used as a stand-alone self-learning device or as a tool after reading the book to test and reinforce the concepts learnt.

Edition details

• Publisher: Financial Times/ Prentice Hall
• Publication date: 2002
• Language: English
• ISBN 10: 0273656562
• ISBN 13: 9780273656562
• Binding: Hardcover
• Edition number: 1
• Number of pages: 176