Description
New Age International (P) Ltd., Publishers Modern Commercial Banking by H.R. Machiraju
The basic function of a commercial bank is risk management. Banks have to adopt a risk management approach to maximise shareholder value/net value and to conform to the RBI guidelines (1999). Further the adoption of ALM and diversification of activities to earn fee income has resulted in the assumption of risks which had to be hedged by derivatives. Since major banks are foreign exchange dealers, exchange risk and interest risk have to be covered. Finally derivatives themselves carry a lot of risk which has become a major concern of regulators.
The book analyses and presents the concepts in banking in relation to the consolidated balance sheet of scheduled commercial banks in India. Risks have been identified and the tools available to hedge them are presented. All chapters are revised and enlarged to take into account the developments since the last edition.
Banking systems in vogue.
Functions of a commercial bank.
Functions of bank capital.
Investment management.
Retail banking.
Risky loans.
Efficiency of banks.
Risks in banking, credit risk, interest rate risk, liquidity risk and foreign exchange risk.
Derivatives for risk management.
International banking.