Praise for The Bank Credit Analysis Handbook, Second Edition
"In this second edition, Philippe Delhaise and Jonathan Golin build on their professional experience with Thomson Bank Watch Asia to produce a clear introduction to bank credit risk analysis. As very few books on this topic exist, it is a most welcome publication. The short and transparent chapters are rich on institutional information, building on intuition. It is quite an achievement to analyze bank solvency with no reference to heavy mathematics and statistics. The book covers topics of recent interest such as liquidity risk, sovereign and banking crises, and bank restructuring."
Jean Dermine, Professor of Banking and Finance, Chair, INSEAD
"Messrs. Delhaise and Golin have written what must be considered the seminal book on bank credit analysis. Its breadth and scope is reflective of the decades of experience they have in deciphering the core elements of bank credit risk. I found the chapter on country and sovereign risk particularly useful. This book should be considered essential reading for anyone in the field of credit risk analysis."
Daniel Wagner, CEO of Country Risk Solutions and author of Managing Country Risk
"This book is an excellent reference for anyone involved in bank risk management. It combines practical tools with case studies. Based on their substantial experience, Golin and Delhaise nicely bridge the gap between theory and practice."
André Farber, Professor of Finance, Université Libre de Bruxelles
"Jonathan Golin has done it again. Both he and Philippe Delhaise have taken a very complicated and timely topic and have distilled the subject matter into an easy read that is useful to those directly or indirectly involved with bank credit analysis."
Craig Lindsay, Chairman, Hong Kong Securities and Investment Institute
"Messrs. Delhaise and Golin have updated their first edition of this handbook with such a high degree of relevance and insight, on the heels of the 2007 2008 banking crisis, that this reference guide will surely be essential reading for every market participant involved with bank risk analysis. There are few people as qualified to write on this subject as these gentlemen; their experience speaks volumes. Once again, they are to be commended for distilling a complex subject into a practical and useful handbook."
Andrew Miller, Management Consultant, Financial Services, Hong Kong
Preface to the New Edition vii
CHAPTER 1 The Credit Decision 1
CHAPTER 2 The Credit Analyst 37
CHAPTER 3 The Business of Banking 87
CHAPTER 4 Deconstructing the Bank Income Statement 155
CHAPTER 5 Deconstructing a Bank s Balance Sheet 215
CHAPTER 6 Earnings and Profitability 261
CHAPTER 7 Asset Quality 337
CHAPTER 8 Management and Corporate Governance 415
CHAPTER 9 Capital 449
CHAPTER 10 Liquidity 493
CHAPTER 11 Country and Sovereign Risk 551
CHAPTER 12 Risk Management, Basel Accords, and Ratings 641
CHAPTER 13 The Banking Regulatory Regime 717
CHAPTER 14 Crises: Banking, Financial, Twin, Economic, Debt, Sovereign, and Policy Crises 781
CHAPTER 15 The Resolution of Banking Crises 847
About the Authors 907