The Bank Director's Handbook: The Board Member's Guide to Banking & Bank Management

Note: Supplemental materials are not guaranteed with Rental or Used book purchases.

ISBN: 9781557387929 | 1557387923
Cover: Hardcover
Copyright: 2/1/1996

Rent

(Recommended)

$24.62

Term

Due

Price

Semester

Dec 13

$25.91

Quarter

Aug 16

$24.62

Short Term

Jul 7

$23.32

*This item is part of an exclusive publisher rental program and requires an additional convenience fee. This fee will be reflected in the shopping cart.
Buy New

In Stock Usually Ships in 24 Hours

$35.41

Regulatory scrutiny of directors is increasing at the same time that performance standards are rising. More than a review of the legal and regulatory issues that bank management faces, The Bank Director's Handbook is a well-rounded management guide for running a profitable bank.

Bank Directors' Duties	p. 1
Accountability of Directors to Shareholders	p. 1
Strong Boards, Strong Banks; Weak Boards, Weak Banks	p. 3
The Responsibilities of Boards of Directors	p. 5
Duty of Care	p. 6
Business Judgment Rule	p. 7
Duty of Loyalty	p. 8
Typical Committees	p. 10
Executive Committee	p. 10
Audit Committee	p. 11
Asset/Liability Committee	p. 11
Investment Committee	p. 12
Loan Committee	p. 12
Trust Committee	p. 12
Personnel Committee	p. 13
Practices Deemed Unsafe or Unsound	p. 13
The Serve Principle	p. 15
Conclusion	p. 16
Strategic Management	p. 17
What Is Strategic Management?	p. 17
Strategic Management Defined	p. 17
What Strategic Management Is Not	p. 18
Successful and Failed Strategies	p. 19
Keys to Success	p. 19
Reasons for Failure	p. 20
The Complexity of Making Decisions	p. 21
The Reality of Performance	p. 23
The Major Factors That Affect Firms Are beyond Their Control	p. 26
The External Environment	p. 26
What Management Can Control	p. 28
Sustained Competitive Advantage	p. 30
Essential Ingredients	p. 31
Stakeholders	p. 32
Stakeholders Defined	p. 32
The Value of the Bank	p. 33
Operating Environment	p. 34
Corporate Factors	p. 34
Improving Communications	p. 35
Other Stakeholders	p. 36
Conclusion	p. 37
Appendix to Chapter Two: Criteria for Evaluating Financial Communications Efforts	p. 37
Developing Bank Marketing Strategy	p. 43
The Tasks of Marketing Management	p. 43
Crafting Marketing Strategy	p. 44
Preconditions for Strategy Selection	p. 48
Situation Analysis	p. 48
Customer Analysis and Marketing Strategy Development	p. 49
The Scope of Customer Analysis	p. 51
Market Segmentation Strategies	p. 54
Mass-Market Strategy	p. 54
Differentiated Strategy	p. 55
Concentrated Strategy	p. 55
Defining Market Segments	p. 56
Positioning within Target Markets	p. 57
Alternative Bases for Positioning	p. 57
Implementing Marketing Strategy	p. 58
Services Development Strategy	p. 58
Developing the Pricing Policy	p. 60
Promotion Strategy	p. 65
Distribution of Services	p. 68
Understanding the Fundamentals of Long-Term Customer Satisfaction	p. 69
The Dimensions of Customer Satisfaction	p. 69
Diagnosing Customer Satisfaction Shortfalls	p. 70
Evaluating Bank's Financial Performance	p. 73
Four Key Steps in Analysis	p. 73
Bank Financial Statements	p. 74
Understanding Bank Assets	p. 74
Understanding Bank Liabilities and Equity	p. 78
Understanding the Statement of Operations	p. 79
Other Relevant Information	p. 82
The Directors' Point of View	p. 83
Caveats about the Data	p. 83
Profitability	p. 87
Capital	p. 89
Liquidity	p. 90
Asset Quality	p. 91
Comparing Financial Performance	p. 92
The FDIC Quarterly Banking Profile	p. 92
Sheshunoff Information Services	p. 96
Uniform Bank Performance Report	p. 96
Conclusion	p. 101
Bank Profile	p. 102
Uniform Bank Performance Report	p. 111
Bank Capital	p. 126
Capital Requirements	p. 126
Core Capital	p. 126
Supplementary Capital	p. 127
Risk-Weighted Assets	p. 128
Prompt Corrective Action	p. 128
Well Capitalized, but Still In Trouble	p. 132
The Role of Capital	p. 132
Capital Facilitates Growth	p. 132
Capital Absorbs Unanticipated Losses	p. 134
High Financial Leverage Is Risky	p. 134
Stockholders versus Regulators	p. 136
Conclusion	p. 138
Asset/Liability Management: Dealing with Internet Rate Risk	p. 139
What Is Asset/Liability Management?	p. 139
Interest Rate Risk Defined	p. 139
Investment Risk	p. 140
Income Risk and Interest Rate Sensitivity	p. 142
Basis Risk	p. 143
Options Risk	p. 144
Yield Curve Risk	p. 144
Trading Risk	p. 144
The Effects of Interest Rate Risk on Income and Value	p. 144
Gap and Net Interest Income	p. 144
Managing Interest Rate Spreads	p. 149
Techniques for Managing Interest Rate Risk: Strengths and Weaknesses	p. 150
Gap Analysis	p. 151
Duration Analysis	p. 156
Simulations	p. 164
Hedging	p. 166
The Basics of Hedging	p. 166
Minimum Variance Hedge	p. 167
Hedging Strategies	p. 168
Puts and Calls	p. 170
Effects of Hedging on NII and Value	p. 171
To Hedge or Not to Hedge?	p. 173
Swaps	p. 174
Uses of Swaps	p. 175
Risks of Swaps	p. 175
Conclusion	p. 176
Selected References	p. 177
Managing Derivatives Risk	p. 179
What Is Risk Management?	p. 180
The Conventional View	p. 180
The Enlightened View	p. 180
Requirements of a Risk Management System	p. 180
A Framework for Risk Management	p. 182
Establish Risk Categories	p. 182
Unbundle Products	p. 183
Quantify Risk Exposures	p. 183
Provide Risk-Adjusted Capital	p. 184
Are Derivatives Any Different?	p. 185
Conclusion	p. 186
Credit Policies and Practices	p. 187
What Is Credit?	p. 187
Credit Policies	p. 187
Lending Authority	p. 190
Loan Review	p. 193
The Least Directors Should Do	p. 195
Lending Is about Risk	p. 196
Seven Ways to Make Loans	p. 197
Customer Requests	p. 197
Solicit Loans	p. 197
Buy Loans	p. 198
Commitments	p. 198
Refinancing	p. 198
Loan Brokers	p. 198
Overdrafts	p. 199
Types of Loans	p. 199
Commercial and Industrial Loans	p. 199
Real Estate Loans	p. 201
Consumer Lending	p. 203
Evaluating a Loan Request	p. 205
The Crucial Role of Information	p. 205
The Six Cs of Credit	p. 207
Collateral	p. 209
Characteristics of Good Collateral	p. 209
Denial of Loans	p. 210
The Worst Cases	p. 211
Charge-Off	p. 211
Impact on Capital	p. 211
Lender Liability	p. 212
Conclusion	p. 213
Dealing with Fraud and Insider Abuse	p. 214
Fraud and Insider Abuse	p. 214
Fraud Defined	p. 214
Insider Abuse Defined	p. 216
Small Banks Are the Primary Targets	p. 217
Common Schemes	p. 218
Insiders Versus Outsiders	p. 219
Insiders	p. 219
Outsiders	p. 220
Money Laundering	p. 221
Organized Crime	p. 222
Money-Laundering Jargon	p. 223
The Process of Money Laundering	p. 224
Know Your Customers!	p. 224
The OCC's Red Flags	p. 228
What Can Be Done to Deter and Detect Fraud?	p. 230
The Role of Directors	p. 230
Bank Security Personnel	p. 230
Audits	p. 230
Examiners	p. 232
Criminal Referral Reports	p. 233
FDIC Red Flags	p. 233
Linked-Financing and Brokered Transactions	p. 234
Conclusion	p. 235
A Director's View of Internal Controls and Auditing	p. 236
Internal Controls	p. 236
What Are Internal Controls?	p. 236
Reasons for Using Internal Controls	p. 237
Establishing Internal Controls	p. 240
Auditing	p. 243
Closing the Expectation Gap	p. 243
Internal Auditors	p. 251
The Role of Bank Examiners	p. 252
Security Personnel	p. 253
Conclusion	p. 263
Mergers and Acquisitions	p. 254
Large Numbers of Mergers	p. 254
Creating Shareholder Value	p. 255
Pure Conglomerate Mergers May Not Create New Shareholder Value	p. 255
Countercyclical Acquisitions May Not Create Value	p. 257
The Stock Market Does Not Reward Growth due Exclusively to Acquisitions	p. 257
Related Diversification Can Create Value	p. 257
Mergers Can Be Used to Reach a Critical Size Where Size Is a Factor	p. 258
Acquisitions Can Be Used to Defer Taxes	p. 258
Merger Terms	p. 259
Taxes	p. 259
Liability	p. 260
Market Value Exchange Ratio	p. 260
Price/Book Value Ratio	p. 261
Price/Earnings Ratio	p. 262
Soft Issues	p. 266
Offensive and Defensive Merger Tactics	p. 266
The Offense	p. 266
The Defense	p. 267
Accounting for Mergers	p. 268
Purchase Method	p. 268
Pooling of Interests Method	p. 270
Income	p. 270
Restrictions	p. 270
Conclusion	p. 271
Loan Policy for Lakeside Bank	p. 273
Loan Policy for Metropolitan Bank	p. 287
Loan Policy for County Bank	p. 297
FDIC Red Flags for Fraud and Insider Abuse	p. 313
Index	p. 335
Table of Contents provided by Syndetics. All Rights Reserved.

Please wait while the item is added to your bag...

FREE SHIPPING

Amazon no longer offers textbook rentals. We do!

The Bank Director's Handbook: The Board Member's Guide to Banking & Bank Management

Summary

Author Biography

Table of Contents

Supplemental Materials