Financial Institutions Management: A Risk Management Approach » (7th Edition)

Anthony Saunders is the John M. Schiff Professor of Finance and the Chair of the Department of Finance at the Stern School of Business at New York University. Professor Saunders received his PhD from the London School of Economics and has taught both undergraduate and graduate level courses at NYU since 1978. Throughout his academic career, his teaching and research have specialized in financial institutions and international banking. He has served as a visiting professor all over the world, including INSEAD, the Stockholm School of Economics, and the University of Melbourne. He is currently on the Executive Committee of the Salomon Center for the Study of Financial Institutions, NYU.

His research has been published in all the major money and banking and finance journals and in several books. In addition, he has authored or co-authored several professional books, the most recent of which is Credit Risk Measurement: New Approaches to Value at Risk and Other Paradigms, John Wiley and Sons, New York, 1999

Saunders and Cornett’s Financial Institutions Management: A Risk Management Approach 7/e provides an innovative approach that focuses on managing return and risk in modern financial institutions. The central theme is that the risks faced by financial institutions managers and the methods and markets through which these risks are managed are becoming increasingly similar whether an institution is chartered as a commercial bank, a savings bank, an investment bank, or an insurance company. Although the traditional nature of each sector’s product activity is analyzed, a greater emphasis is placed on new areas of activities such as asset securitization, off-balance-sheet banking, and international banking.

Saunders/Cornett, 6e


Brief Contents

PART ONE: Introduction

1 Why Are Financial Intermediaries Special?

2 The Financial Services Industry: Depository Institutions

3 The Financial Services Industry: Insurance Companies

4 The Financial Services Industry: Securities Firms and Investment Banks

5 The Financial Services Industry: Mutual Funds and Hedge Funds

6 The Financial Services Industry: Finance Companies

7 Risks of Financial Intermediation

PART TWO: Measuring Risk

8 Interest Rate Risk I

9 Interest Rate Risk II

10 Market Risk

11 Credit Risk: Individual Loan Risk

12 Credit Risk: Loan Portfolio and Concentration Risk

13 Off-Balance-Sheet Risk

14 Foreign Exchange Risk

15 Sovereign Risk

16 Technology and Other Operational Risks

17 Liquidity Risk

PART THREE: Managing Risk

18 Liability and Liquidity Management

19 Deposit Insurance and Other Liability Guarantees

20 Capital Adequacy

21 Product Diversification

22 Geographic Expansion

23 Futures and Forwards

24 Options, Caps, Floors, and Collars

25 Swaps

26 Loan Sales

27 Securitization