- Provides a coherent framework
- Includes case studies from the banking sector
- Policy-oriented
- Suitable student reading: reference and supplementary
Banks and financial institutions are faced with two apparently conflicting
phenomena-interest rate deregulation on the one hand and capital adequacy requirements and
prudential norms on the other. In such a situation, these institutions need to work out a
strategic framework which must evolve around the profit objective so as to build up
quality loan-assets portfolios and to ensure adequate capital growth. This book provides a
comprehensive analysis of lending strategies, credit appraisal, risk analysis, and lending
decisions within the overall objectives of a lending organization.
This revised edition takes into account recent global developments in the banking sector
as well as changes in the notion of banking. It includes three new chapters in which the
author discusses topical issues such as the impact of capital regulation on the risk
attitude and profitability of banks, strategies to protect banks from a liquidity crisis,
and the need of a portfolio approach in developing models for credit exposure and loan
management within a risk-return framework.
Providing a logical framework along with examples of practical applications and case
studies, this book imparts students and professionals with required skills necessary to
develop the expertise needed to manage finance and credit in banking and elsewhere in the
financial sector.
Table of Contents
Acknowledgements
Preface to the Second Edition
Introduction
1: Capital Regulation and Risk Management Strategy;
2: Liquidity Management and Asset-Liabilities Strategy;
3: Banking Strategy;
4: Lending Strategy and Loan Policy;
5: Fixed Assets;
6: Working Capital: A Techno-Financial Approach;
7: Current Assets and Fictitious Assets;
8: Long-Term Liabilities;
9: Current Liabilities;
10: Profit and Loss Account;
11: Understanding the Balance Sheet;
12: New Era of Lending: Tandon Committee and its Aftermath;
13: Business Forecasting and Credit Decisions;
14: Funds Flow and Cash Flow Analysis;
15: Cost, Profitability and Break-Even Analysis;
16: Appraisal and Monitoring through Ratios;
17: Project Appraisal: Methods and Techniques;
18: Project Appraisal and Lending Decisions;
19: Small Business Loan;
20: Credit-Risk Analysis;
Bibliography
Index
632 pages, Paperback
