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 | | Managing Financial Institutions: An Asset/Liability Approach (The Dryden Press Series in Finance) by Mona J. Gardner ISBN-10: 9780030220548 ISBN-10: 0-03-022054-8 ISBN-13: 9780030220548 ISBN-13: 978-0-03-022054-8 Paperback 1999-08-09 South-Western College Pub Find Lowest Price |
Editorials | ||
Product Description The fourth edition of Managing Financial Institutions: An Asset/Liability Approach provides comprehensive coverage of asset and liability management techniques for depository institutions, finance companies, insurance companies, pension funds, mutual funds, securities firms, and diversified financial services firms, all of which operate in an increasingly competitive environment. The text is suitable for use in courses on financial institutions and commercial bank management. | ||
Reviews | ||
By academics for introductory and academic short-course With one review, it's easy to get 5 stars. While I don't write too many reviews, I did read this book and felt the average needed to be reflected, not the skew. This is a remedial book written by academics with very little practical industry knowledge. Reading through the list of "acknowledgements" will give you the idea. Nothing but professors at colleges and universities. Now, there is nothing wrong with a strong academic influence, but when you define Asset Liability Management as (p. 31) "...the management of the net interest margin to ensure its level and riskiness are compatible with the risk/return objectives of the institution" you realize these authors don't have a clue. Really? That's ALM. Managing the NIM? What about duration profile, economic value, VaR, securitization programs, pricing, liquidity profile, ALCO process, forecasted balances, maturity strategies on retail and wholesale funding, risk position, regulatory requirements (read FRB SR 96-13), FAS 133, swap book, vega risk, negative convexity profile, etc. To think it is only about the NIM is juvenille, but very appropriately academic. Moreover, they define the NIM as = Interest income less expense/total assets. No. That isn't correct. So if the objective of ALM is to manage the NIM and you can't get the definition correct, this is probably a problem. The correct view of the NIM is interest income less expense/earning assets or, more ideally, average earning assets. Go read the FFIEC's definition in the Uniform Bank Performance Report (www.ffiec.gov). Having made these points, I think the book has merit for, again, a very simplistic intro course. One hopes that in any future editions the authors seek to get professional advice before taking to press. They have some good background research and the book could be made really good; however, they need to infuse it with practical details and vision. As is, it is a stale, incomplete and common book. If you want better insights, just read Wilmott, Bessis, Fabozzi, and Hull. | ||
Gardner et.al. review I have not read this edition but I have several earlier editions and will soon have this one. Their books are always state of the art and a must read for institutional risk managers. The text provides numerous comprehensible detailed examples of managing risk at modern financial institutions. Market coverage is also excellent. This one is for anyone who actually has to manage risk. It is not however an intro book for the novice who is looking only for general information. | ||