Principles of Banking

MOORAD CHOUDHRY is a non-executive director at Recognise Bank Limited, in London, a non-executive director at the Loughborough Building Society, and an independent non-executive advisor on the Risk Committee at Nubank, in Sao Paulo. He was born in Bangladesh and lives in Surrey, England.

• Forewords xixNeal ArdleySharon BowlesHenrique FragelliOldrich MasekJason OakleyHelen SachdevPreface xxxixAcknowledgements xlvAbout the Author liPart I Banking, Bank Customer Business and Regulation 1Chapter 1 Banking, bank business and financial statements 3Chapter 2 Ethics, conduct and customer service 75Chapter 3 Bank regulatory capital and the “Basel Rules” 97Part II Bank Asset and Liability Management 159Chapter 4 The yield curve 161Chapter 5 Asset– liability management I 201Chapter 6 Balance sheet management: money markets, FX, trading and hedging, and securitisation 251Chapter 7 Managing interest- rate risk in the banking book (IRRBB) 303Chapter 8 Bank Treasury operating model 333Chapter 9 ALCO governance framework and terms of reference 351Chapter 10 ALM sundries: asset encumbrance, hedge accounting, IFRS 9 and EIR 383Part III Bank Liquidity Risk Management 401Chapter 11 Principles of bank liquidity management 403Chapter 12 Liquidity risk metrics 445Chapter 13 Liquidity risk reporting 461Chapter 14 Bank funds transfer pricing 469Part IV Bank Strategy and Governance 491Chapter 15 Bank strategy I: inputs and setting 493Chapter 16 Bank strategy II: capital and funding management 521Chapter 17 Principles of corporate governance 541Part V Principles of Risk Management and Regulation 573Chapter 18 The risk management framework 575Chapter 19 Credit risk assessment and reporting principles 617Chapter 20 Stress testing, ICAAP, ILAAP and reverse stress testing 647Chapter 21 Recovery planning and resolution planning 693Chapter 22 Sustainable banking and climate change risk management 703Chapter 23 Case studies: analysis, problem solving and decision making 721Chapter 24 Everything changes, and nothing changes: excerpts from a timeless work 753Part VI Guide to the Companion Website 761Chapter 25 Applications software, policy templates and spreadsheet models 763Afterword 771List of Terms and their Abbreviations 775Index 781