Banks at risk : global best practices in an age of turbulence

Title:

Publication Information:

Singapore : J. Wiley & Sons (Asia), 2011

Physical Description:

xi, 236 p. : ill. ; 24 cm

ISBN:

9780470827192

Subject Term:

Bank management

Banks and banking -- Risk management

Added Author:

Hoflich, Peter

Available:*

Library	Item Barcode	Call Number	Material Type	Item Category 1	Status
Searching... PSZ JB	30000010280486	HG1615 B364 2011	Open Access Book	Book	Searching... Unknown

Summary

Ideas on how to reform the financial services industry, from experts on the inside

In the wake of the financial crisis of 2008 the practices of the entire global financial services industry have been called into question. From the government, to the media, to the general public, everyone is re-thinking the way forward for the financial sector, but the stakes are high. Should negative trends in the industry continue and financial innovations allow fallout from the next crisis to grow exponentially, the endgame could be the sort of mutually assured destruction that topples entire economies. Charting the way forward for financial services reform requires a fundamental reappraisal of how things are done in order to avert disaster in the near future, and Banks at Risk: Global Best Practices in an Age of Turbulence explores what the future holds, by talking to experts in the know.

Compiling the insights of ten key figures in the financial services industry--regulators, commercial bankers, risk managers, and infrastructure specialists--who look at both strategic and operational issues in their assessments of how to clean up the industry and move towards a system of properly-managed risk, the book explores exactly what we need to do to prevent another crisis.

Sharing their thoughts for the first time are Liu Mingkang, the Chairman of the China Banking Regulatory Commission; Eric Rosengren, President of the Federal Reserve Bank of Boston; Joel Werkama, Assistant Vice President of the Federal Reserve Bank of Boston; Jane Diplock, former chairperson of the International Organization of Securities Commissions and the former head of New Zealand's securities commission; Jose Maria Roldan, head of the banking supervision at the Bank of Spain; Jesus Saurina, Director of the Financial Stability Department at the Bank of Spain; Dick Kovacevich, former chairman and CEO of Wells Fargo Bank; Mike Smith, CEO of ANZ Group and former head of HSBC's Asia Pacific operations; Shan Weijian, Chairman and CEO of Pacific Alliance Group and former senior partner of TPG Capital; Rob Close, former CEO of CLS Group; Tham Ming Soong, Chief Risk Officer at the United Overseas Bank in Singapore; and Tsuyoshi Oyama, former head of the risk assessment division in the international affairs division of the Bank of Japan.

Takes a unique look at the problems with the financial services industry and what can be done to fix them Brings together ideas for reform from numerous internationally respected figures working in the industry, many of them writing about their solutions for the first time Offers a remarkable insight into how to build a more sustainable future

Eminently thought provoking, Banks at Risk presents real solutions to reforming the financial services industry, from the men and women who know it best.

Author Notes

Peter Hoflich is the managing editor of The Asian Banker . He joined the company in 2003 as a writer and analyst and has contributed to all of the company's main research and editorial products. He has moderated at industry gatherings and offered commentary on the latest developments in the financial services industry on BBC and CNBC. His first book, Asia's Banking CEOs was published by John Wiley & Sons in 2008.

Liu MingkangEric S. Rosengren and Joel WerkemaJane DiplockJosé María Roldán and Jesús SaurinaRichard KovacevichMike SmithShan WeijianRob CloseTham Ming SoongTsuyoshi Oyama

Acknowledgments	p. xi
Introduction	p. 1
Ashes of the Heroes	p. 1
Banks, Rest, and Motion	p. 5
Danger!	p. 8
Around the World to Find Answers	p. 13
Part 1 The Regulators
1 Effective Supervision of Systemically Important Banks	p. 25
The Moral Hazard Facing Large Banks	p. 26
Suggested Measures	p. 28
Some Thoughts on the Solution to the TBTF Bank Problem	p. 31
China's Practices in the Supervision of Large Banks	p. 36
Conclusion	p. 38
2 Implications of the Financial Crisis for Risk Management and Macroprudential Supervision	p. 44
Observations on the Financial Crisis	p. 45
Exploring the Promise of Macroprudential Supervision	p. 48
Reducing the Likelihood of Future Problems by Holding More Capital	p. 51
Alternative Crisis Mitigation Strategies	p. 54
Concluding Observations	p. 58
3 Entering an Era of Global Regulatory Oversight	p. 67
Lessons of the Global Financial Crisis	p. 67
Coordinating Securities Regulation	p. 69
The Importance of Setting Principles and Multilateral Memoranda of Understanding	p. 71
Identifying and Addressing Systemic Risk	p. 72
IOSCO's Post-crisis Recommendations	p. 73
Post-crisis Accounting Issues	p. 76
The Future Global Regulatory Framework	p. 79
Conclusion	p. 80
4 Old and New Lessons of the Financial Crisis for Risk Management	p. 88
Introduction	p. 88
Old Lessons Drawn from the Crisis	p. 90
New Lessons To Be Drawn from the Crisis	p. 97
Conclusion	p. 99
Part 2 The Practitioners
5 Observations from the Epicenter	p. 109
The Safety Valves Failed	p. 111
Passing the Buck	p. 113
A Conspiracy of Silence	p. 114
Stress Testing	p. 115
Opportunities for Positive Change	p. 116
Compensation and the Role of Risk Management	p. 117
Risk Management is in a Bank's DNA	p. 122
6 The Financial Crisis: Epicenters and Antipodes	p. 129
Calling the Crisis	p. 130
Managing Crises	p. 132
Government Involvement	p. 133
Regulation	p. 134
Supervision	p. 137
Good Solutions in the Past	p. 139
Part of a System	p. 143
7 The Trouble With Troubled Banks	p. 148
Banks Led Astray	p. 151
Restructuring Banks: Management	p. 153
Restructuring Banks: Capital	p. 155
Conclusion	p. 156
Part 3 The Risk Managers
8 Global Risk Management in Action	p. 165
The Foreign Exchange Market	p. 165
Settlement Risk	p. 166
What is CLS?	p. 167
How CLS Works	p. 168
Failure Management	p. 174
Supervisors and Risk	p. 174
Regulatory Engagement	p. 176
Delivering Efficiencies and Growing Business Opportunities	p. 178
Expanding the Risk Management Role with Changing Needs	p. 179
Looking to the Future	p. 180
9 The Credit Crisis and Its Implications for Asian Financial Institutions	p. 186
The Beginning of the End	p. 188
Higher Standards	p. 190
Holding Capital: East versus West	p. 192
Testing the System	p. 196
Preparing Systems	p. 197
10 Missing Viewpoints of Current Global Regulatory Discussions	p. 206
Causes of the North Atlantic Financial Crisis: The Epicenter View	p. 206
Anatomy of the North Atlantic Financial Crisis: The Epicenter Perspective	p. 207
Anatomy of the North Atlantic Financial Crisis: The Non-epicenter Perspective	p. 209
Assessing the Current Global Regulatory Reactions	p. 218
Conclusion	p. 226
Index	p. 233

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Summary

Summary

Author Notes

Table of Contents