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Management of Banking and Financial Services, 4e

Book Description

Management of Banking and Financial Services 4/e, provides a thorough landscape of the banking and financial services in the country. The book addresses the issues of rapid globalization, competition nurtured by customer awareness, threat of security invasion and fraud in an era of technology savvy world, demands for transparency and the regulator’s overdrive to capital efficiency or asset quality. It has updated chapters on credit risk management, solvency, interest rate volatility and adequate liquidity which should be measured and managed.

Table of Contents

  1. Cover
  2. About Pearson
  3. Title Page
  4. Contents
  5. Foreword
  6. Preface to the Fourth Edition
  7. Overview
  8. Acknowledgements
  9. About the Authors
  10. 01 Managing Banking and Financial Services—Current Issues and Future Challenges
    1. SECTION I THE SETTING
    2. SECTION II CHANGE IS IN THE AIR….IS THE FINANCIAL SYSTEM BEING REVOLUTIONISED?
    3. Fintech
    4. Digital currencies
    5. Climate change and financial system
    6. SECTION III THE GLOBAL FINANCIAL SYSTEM – AFTER THE FINANCIAL CRISIS
    7. A Rewind to the Financial Crisis of 2007–08
    8. The Causes of the Crisis
    9. Prevalent models of banking
    10. Investment banks, Commercial banks and Universal banks – What is the difference?
    11. Macroeconomic and Financial Stability—Understanding the Linkages
    12. The Role of ‘Trust’ in Financial Stability
    13. The Role of Regulation in Ensuring Financial Stability
    14. The Objectives of Financial Regulation
    15. Financial Stability—the Over-arching Agenda for the Future
    16. SECTION IV THE INDIAN FINANCIAL SYSTEM—AN OVERVIEW
    17. Financial Stability in India
    18. SECTION V THE INDIAN BANKING SYSTEM—AN OVERVIEW
    19. The Financial Institutional Structure in India
    20. Who Owns the Commercial Banks in India?
    21. Public Sector Banks
    22. Private Sector Banks
    23. Small Finance Banks (SFB)
    24. Payments Banks
    25. Foreign Banks
    26. Indian Banks Operating Overseas
    27. Regional Rural Banks (RRBs)
    28. Non Banking Financial Institutions (NBFI)
    29. Non Banking Finance Companies (NBFC)
    30. Housing Finance Companies (HFC)
    31. Co-operative Credit Institutions
    32. Banking Models in India
    33. The Indian Financial Code (2015)
    34. The Way Forward…
    35. Technology the - game changer
    36. Annexure I: Banking Sector Reforms
    37. Annexure II: Committee on Financial Sector Reforms—2009: Main Proposals of the Raghuram Rajan Committee
    38. Annexure III: Select Major Policy and Legal Reforms Since 1991–92
  11. 02 Monetary Policy—Implications For Bank Management
    1. SECTION I BASIC CONCEPTS
    2. A Macroeconomic View
    3. Central Bank Tools to Regulate Money Supply
    4. The Impact of OMOs on Other Tools of Monetary Policy
    5. Central Bank Signaling Through the ‘Policy Rate’
    6. Popularity of the ‘Repo’ Rate as the Policy Rate
    7. Other Factors that Impact Monetary Base and Bank Reserves
    8. SECTION II APPLICATION OF THE MONETARY POLICY TOOLS IN INDIA
    9. The Monetary Base in India
    10. Measuring Money Supply in India
    11. Operation of Reserve Requirements in India
    12. Net Demand and Time Liabilities
    13. Operation of the Bank Rate in India
    14. Open Market Operations in India
    15. Repo Market Instruments Outside the LAF
    16. SECTION III MONETARY POLICY TOOLS IN SELECT COUNTRIES
    17. The United States of America
    18. Net Transaction Accounts
    19. The Eurosystem
    20. Other Developed and Developing Countries
    21. Annexure I: Computation of the NDTL for the Banking System in India
    22. Annexure II: An introduction to the money market in India
    23. Annexure III: Case Study: European Central Bank’s decision to bail out Greece
  12. 03 Banks’ Financial Statements
    1. SECTION I BASIC CONCEPTS
    2. Bank Liabilities
    3. Bank Assets
    4. Contingent Liabilities
    5. The Income Statement
    6. SECTION II FINANCIAL STATEMENTS OF BANKS OPERATING IN INDIA
    7. Bank Liabilities
    8. Bank Assets
    9. Income Statement of Indian Banks
    10. Other Disclosures to be Made by Banks in India
    11. SECTION III ANALYZING BANKS’ FINANCIAL STATEMENTS
    12. Annexure I: Moving to Wards Risk Based Assessment of Banks
    13. Annexure II: Key Performance Indicators (KPI) for Banks
    14. Annexure III: Some Alternative Models for Bank Financial Statement Analysis
    15. Annexure IV: Case Study: Analysis of Profitability—A Du Pont Analysis of Bank Groups in India
    16. Annexure V: Indian Accounting Standards (IndAS) for Banks and Other Financial Institutions
  13. 04 Sources of Bank Funds
    1. SECTION I BASIC CONCEPTS
    2. SECTION II BANK LIABILITIES—DEPOSITS
    3. Protecting the Depositor—Deposit Insurance
    4. Deposit Insurance in India
    5. SECTION III PRICING DEPOSIT SERVICES
    6. The Need to Price with Precision
    7. Some Commonly Used Approaches to Deposit Pricing
    8. Marginal Cost of Funds Approach
    9. New Cost of Funds Analysis
    10. Deposits and Interest Rate Risk
    11. SECTION IV BANK LIABILITIES—NON-DEPOSIT SOURCES
    12. The Funding Gap
    13. The Indian Scenario
    14. SECTION V BANK DEPOSITS IN INDIA—SOME IMPORTANT LEGAL ASPECTS
    15. ‘Banking’ Defined
    16. Who is a Customer?
    17. Who is Eligible to be a Customer?
    18. General Guidelines for Opening Deposit Accounts
    19. Termination of Banker–Customer Relationship
    20. Types of Deposit Accounts
    21. SECTION VI DESIGN OF DEPOSIT SCHEMES—SOME ILLUSTRATIONS
    22. Recurring Deposit Scheme (RD)
    23. Reinvestment Deposit Scheme
    24. Fixed Deposit Scheme
    25. Cash Certificates
    26. Annexure I: Some Important Non-Deposit Funding Sources for Banks in India and the USA
    27. Annexure II: Some Important Legal Provisions Relevant for Bankers
    28. Annexure III: A Summary of Important Legal Aspects of Bank Deposits in India
    29. Annexure IV: Anti-Money Laundering and Know Your Customer Guidelines—International Best Practices and Guidelines for Indian Banks
  14. 05 Uses of Bank Funds—The Lending Function
    1. SECTION I BASIC CONCEPTS
    2. Introduction
    3. Banks’ Role as Financial Intermediaries
    4. Gains from Lending
    5. Who Needs Credit?
    6. Features of Bank Credit
    7. Types of Lending
    8. SECTION II THE CREDIT PROCESS
    9. Constituents of the Credit Process
    10. SECTION III FINANCIAL APPRAISAL FOR CREDIT DECISIONS
    11. Financial Ratio Analysis
    12. Common Size Ratio Comparisons
    13. Cash Flow Analysis
    14. SECTION IV FUND BASED, NON-FUND BASED AND ASSET BASED LENDING—FEATURES AND POPULAR FORMS
    15. Fund Based Lending
    16. Non-fund Based Lending
    17. Asset Based Lending
    18. SECTION V LOAN PRICING AND CUSTOMER PROFITABILITY ANALYSIS
    19. Step 1: Arrive at Cost of Funds
    20. Step 2: Determine Servicing Costs for the Customer
    21. Step 3: Assess Default Risk and Enforceability of Securities
    22. Step 4: Fixing the Profit Margin
    23. Some More Models of Loan Pricing
    24. Annexure I: Risk Classification Criteria
    25. Annexure II: The Importance and Role of Credit Rating Agencies (CRAS)
    26. Annexure III: Credit Appraisal—Some Commonly Used Financial Ratios
    27. Annexure IV: Income Statement-Based Cash Flow Analysis
    28. Annexure V: Case Study: LIBOR – The Benchmark and the Manipulation
  15. 06 Banks in India—Credit Delivery and Legal Aspects of Lending
    1. SECTION I MODES OF CREDIT DELIVERY
    2. Cash Credit
    3. Loan System for Delivery of Bank Credit—The Working Capital Demand Loan
    4. Overdrafts
    5. Bills Finance
    6. Pricing of Loans
    7. Exemptions
    8. SECTION II LEGAL ASPECTS OF LENDING
    9. What are Unsecured Loans?
    10. What are Secured Loans?
    11. What is a ‘Security’?
    12. Annexure I: Types of Borrowers and Modes of Lending
    13. Annexure II: Reclassification of Borrowers’ Financial Statements for Credit Appraisal
    14. Annexure III: Some Common Securities for Bank Loans
    15. Annexure IV: Case Study — Credit Appraisal
  16. 07 Credit Monitoring, Sickness and Rehabilitation
    1. SECTION I BASIC CONCEPTS
    2. The Need for Credit Review and Monitoring
    3. Triggers of Financial Distress
    4. Financial Distress Models—The Altman’s Z-Score
    5. Some Alternate Models Predicting Financial Distress
    6. The Workout Function
    7. SECTION II CREDIT INFORMATION COMPANIES IN INDIA
    8. CIBIL and Loan Approval
    9. Other Credit Information Companies in India
    10. Debt Restructuring and rehabilitation of sick firms in India—the Workout function
    11. What is Restructuring?
    12. Criteria for Considering Restructuring
    13. Relief Measures under Restructuring
    14. Valuation of Restructured Advances
    15. Annexure I: Warning Signs that Banks Should Look out for—An Illustrative Checklist
    16. Annexure II
    17. Annexure III: Case Studies: CDR and SDR
  17. 08 Managing Credit Risk—An Overview
    1. SECTION I BASIC CONCEPTS
    2. Expected Versus Unexpected Loss
    3. Defining Credit Risk
    4. International guidelines and standards for Credit Risk management – The Basel Committee on Banking Supervision (BCBS)
    5. Classifying ‘Impaired’ Loans
    6. Loan Workouts and Going to Court for Recovery
    7. Credit Risk Models
    8. SECTION II MEASURING CREDIT RISK— INTRODUCTION TO SOME POPULAR CREDIT RISK MODELS
    9. A Basic Model
    10. Modeling Credit Risk
    11. SECTION III CREDIT RISK TRANSFERS— SECURITIZATION, LOAN SALES, COVERED BONDS AND CREDIT DERIVATIVES
    12. SECURITIZATION
    13. Asset Reconstruction Companies (ARC)
    14. Covered Bonds
    15. Legislation on covered bonds—select countries
    16. Credit Derivatives
    17. Some Basic Credit Derivative Structures
    18. SECTION IV TREATMENT OF CREDIT RISK IN INDIA—SOME IMPORTANT EXPOSURE NORMS, PRUDENTIAL NORMS FOR ASSET CLASSIFICATION, INCOME RECOGNITION AND PROVISIONING
    19. Some Important Exposure Norms
    20. Large Exposures Framework (LEF)
    21. Prudential Norms for Asset Classification, Income Recognition and Provisioning
    22. Income Recognition
    23. Asset Classification
    24. SECTION V TREATMENT OF CREDIT RISK IN INDIA—SECURITIZATION AND CREDIT DERIVATIVES
    25. Securitization—The Act
    26. Securitization—the Guidelines
    27. Sale of Assets by Banks not Involving SC/RC
    28. Strengthening the securitization framework in India
    29. Asset Reconstruction companies in India
    30. How do ARCs work?
    31. Securitization—The Indian Experience
    32. India’s Securitization market in 2016
    33. Credit Derivatives in India
    34. Annexure I: Basel Committee Documents on Credit Risk Management
    35. Annexure II: Salient Features of Securitization
    36. Annexure III: Case Study: Kingfisher Airlines –A High Profile NPA
  18. 09 Managing Credit Risk—Advanced Topics
    1. SECTION I BASIC CONCEPTS
    2. Estimating PD, EAD and LGD—The Issues
    3. Why Do We Need Credit Risk Models?
    4. Credit Risk Models—Best Practice Industry Models
    5. SECTION II SELECT APPROACHES AND MODELS—THE CREDIT MIGRATION APPROACH
    6. The Credit Migration Approach (Used by Credit Metrics)
    7. Model Applied to Loan Commitments
    8. Calculation of Portfolio Risk
    9. The Credit Migration Approach (Used by CreditPortfolioView)
    10. SECTION III SELECT APPROACHES AND MODELS—THE OPTION PRICING APPROACH
    11. The KMV Model
    12. Improvements Made to the Basic Structural Model in the Current Version EDF8.0
    13. SECTION IV SELECT APPROACHES AND MODELS—THE ACTUARIAL APPROACH
    14. Credit Risk+™ Model
    15. SECTION V SELECT APPROACHES AND MODELS—THE REDUCED FORM APPROACH
    16. Kamakura Risk Manager Version 8.0 and Kamakura Public Firm Models Version 5.0
    17. A Brief Description of the Approaches Follows
    18. Which Model is Better—Structured or Reduced Form?
    19. SECTION VI PRICING CREDIT DERIVATIVES
    20. Pricing Credit Default Swaps—Understanding the Cash Flows
    21. Pricing Credit Default Swaps—Grasping the Basics
    22. Pricing Collateralized Debt Obligations—The Basics
    23. SECTION VII CREDIT RISK MEASUREMENT AFTER THE FINANCIAL CRISIS
    24. The Financial Crisis—An Overview and Analysis
    25. Current Developments and Regulatory Changes
    26. Some developments
    27. SECTION VIII A NOTE ON DATA ANALYTICS AND BUSINESS SIMULATION
    28. Business Simulations: 5 Reasons Why Business Simulations Are Great Learning Tools
    29. Annexure I: Case Study-The Global Credit Crisis—A Brief Chronology of Events in 2007–08
  19. 10 Managing Market Risk—Banks’ Investment Portfolio
    1. SECTION I BASIC CONCEPTS
    2. The Treasury Functions
    3. Risks and Returns of Investment Securities
    4. SECTION II MEASURING MARKET RISK WITH VAR AND EXPECTED SHORTFALL (ES)
    5. Approaches to VaR Computation
    6. ES and VaR – a comparison
    7. SECTION III BANKS’ INVESTMENT PORTFOLIO IN INDIA—VALUATION AND PRUDENTIAL NORMS’
    8. Classification of the Investment Portfolio
    9. Valuation of Investments
    10. Investment Reserve
    11. Determination of ‘Market Value’ While Marking to Market (HFT and AFS Categories)
    12. ‘Non-Performing’ Investments
    13. Income Recognition
    14. Annexure I: Case Study—LTCM Collapse and Link with VaR
    15. Annexure II: Summary of Regulatory Responses to Market Risk Measurement Practices by Banks After the Global Financial Crisis
  20. 11 Capital—Risk, Regulation and Adequacy
    1. SECTION I BASIC CONCEPTS
    2. Why Regulate Bank Capital?
    3. To What Should Capital be Linked to Ensure Bank Safety?
    4. The Concept of Economic Capital
    5. The Concept of Regulatory Capital
    6. SECTION II RISK-BASEDCAPITAL STANDARDS—REGULATORY CAPITAL
    7. Demystifying the Basel Accords I, II and III
    8. Basel Accord I
    9. Basel Accord II
    10. Basel Accord III
    11. Basel IV –or is it Basel 3.5? Move to More Regulatory Approaches to Risk Measurement
    12. SECTION III APPLICATION OF CAPITAL ADEQUACY TO BANKS IN INDIA
    13. Capital Components–Banks in India
    14. Capital Funds of Banks Operating in India
    15. Counter Cyclical Capital buffer (CCCB)
    16. Leverage Ratio
    17. Capital Measure
    18. Exposure Measure : General Measurement Principles
    19. Calculating Capital Charges and Risk-Weighted Assets
    20. SECTION IV ILLUSTRATIVE PROBLEMS ON CALCULATING CAPITAL ADEQUACY
    21. Steps for Computing Risk-Weighted Assets
    22. Annexure I: Determination of Risk Weighted Assets Under the Basel Norms
    23. Annexure II: The Financial Crisis of 2007—Basel II and the Blame Game
    24. Annexure III: Pillars II and III of Basel III Accord and Their Application to Indian Banks
    25. Annexure IV: Capital Adequacy Ratios of Indian Banks—Some Comparative Charts
  21. 12 Managing Interest Rate and Liquidity Risks
    1. SECTION I THE CHANGNG FACE OF BANKING RISKS
    2. SECTION II ASSET LIABILITY MANAGEMENT
    3. SECTION III INTEREST RATE RISK MANAGEMENT
    4. Interest rate risk in the banking book - Basel committee standards - Salient features
    5. Types of risks
    6. Revised Principles for IRRBB
    7. The standardised framework
    8. Overall structure of the standardised framework
    9. Components of the standardised framework
    10. Calculation of change in Economic Value of Equity (ΔEVE)
    11. Calculation of change in projected Net Interest Income (ΔNII)
    12. Components of interest rates
    13. IRRBB and CSRBB
    14. Measuring Interest Rate Risk
    15. Managing Interest Rate Risk—A Strategic Approach
    16. Interest Rate Risk or Model Risk?
    17. Alternative Methods to Reduce Interest Rate Risk
    18. SECTION IV MANAGING INTEREST RATE RISK WITH INTEREST RATE DERIvATNES
    19. Swaps
    20. Interest Rate Futures
    21. Forward Rate Agreements (FRAs)
    22. Interest Rate Options
    23. Interest Rate Guarantees
    24. Swaptions
    25. Arbiloans
    26. Derivatives Market Growth—The Issues
    27. SECTION V LIQUDITY RISK MANAGEMENT AND BASEL III
    28. Sources of Liquidity Risk
    29. Modern Approaches to Liquidity Risk Management
    30. Approach to Managing Liquidity for Long-Term Survival and Growth
    31. Approach to Managing Liquidity in the Short Term— Some Tools for Risk Measurement
    32. Basel III—The International Framework for Liquidity Risk Measurements, Standards and Monitoring
    33. SECTION VI APPLICABILITY TO BANKS IN INDIA
    34. Interest Rate Derivatives in India
    35. The Exchange Traded Interest Rate Derivatives in India
    36. ALM Framework for Indian Banks
    37. Liquidity Risk Management in Indian Banks
    38. Annexure I: Theories of Interest Rates
    39. Annexure II: Concept of Duration and Convexity
    40. Annexure III: Features of a Sound Liquidity and Funds Management Policy and Symptoms of Potential Liquidity Risk
    41. Annexure IV: Management of Liquidity Risk in Financial Groups—Key Findings
    42. Annexure V: ALM in India—Classification of Bank Liabilities and Assets According to Rate Sensitivity and Maturity Profile
    43. Annexure VI: Case Study—Northern Rock Liquidity Crisis
  22. 13 Banking Functions, Retail Banking and Laws in Everyday Banking
    1. SECTION I BASIC CONCEPTS
    2. Negotiable Instruments
    3. Types of Deposits
    4. Non-Resident Indian (NRI) Accounts
    5. Mandates and Power of Attorney
    6. SECTION II RETAIL BANKING-NATURE AND ScoPE
    7. Why Banks Focus on Retail Business
    8. Emerging Issues in Handling Retail Banking
    9. SWOT Analysis of Retail Banking
    10. Strategies for Success in Retail Banking
    11. SECTION III CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
    12. Marketing—Coin
    13. CRM Strategies/Steps
    14. Three Tip Questions for Managers
    15. Image-Building Exercises
    16. Blending Tradition with Technology
    17. SECTION IV LAWS IN EVERYDAY BANKING
    18. Key Acts That Govern the Functioning of the Banking Sector
    19. Different Customers—Different Laws
    20. Bank-Customer Relationship
    21. Rights of a Banker
    22. Obligations of a Banker
    23. Case Study: Savings Account is Not an Investment Tool
  23. 14 Banking System—Services and Innovations
    1. SECTION I COMMERCIAL BANKING SYSTEM AND STRUCTURE
    2. Globalization and Innovations
    3. SECTION II CASE STUDIES OF BANKS
    4. The ICICI Bank
    5. HSBC Bank
    6. The State Bank of India (SBI)
    7. SECTION III CASE IN DETAT—HSBC BANK
    8. Accounts
    9. Credit Cards
    10. Standard Privileges for HSBC Card Holders
    11. Loans
    12. Wealth Management
    13. Insurance
    14. Special Offers
    15. Case Questions
    16. Case Study: Interest Rates and Prof Bond
  24. 15 International Banking—Foreign Exchange and Trade Finance
    1. INTRODUCTION
    2. SECTION I BASIC CONCEPTS
    3. Exchange Rates
    4. FOREX Market
    5. Transfer Systems
    6. Direct and Indirect Quotations
    7. Functioning of Foreign Exchange Market
    8. SECTION II INTER-BANK MARKET AND FOREX DEALING
    9. Forex Dealing Room Operations
    10. Spot, Forward, Cash, TOM Rates in an Inter-Bank Market
    11. Bid and Offer Rates
    12. Foreign Exchange Market
    13. SECTION III TRADE FINANCE —LETTERS OF GREDIT
    14. Financing International Trade Through Letters of Credit
    15. Flowchart Depicting a Typical Import Transaction with Letter of Credit
    16. SECTION IV TRADE FINANCE — FINANCING EXPORTERS
    17. Features of Packing Credit in Local Currency
    18. Features of Pre-Shipment Credit in Foreign Currency (PCFC)
    19. Post-Shipment Finance
    20. SECTION V FOREIGN CURRENCY LOAN (FCL)
    21. Features of Foreign Currency Loans
  25. 16 High-Tech Banking—E-Payment Systems and Electronic Banking
    1. SECTION I BASIC CONCEPTS
    2. Why Do We Need Technology in Banking?
    3. Benefits of Electronic Banking
    4. SECTION II E-PAYMENTS
    5. The Importance of Payments and Settlement Systems
    6. International Standards and Codes for Payment and Settlement Systems
    7. SECTION III RETAIL PAYMENT SYSTEMS
    8. Paper-Based Instruments in Retail Payment Systems—An Overview
    9. Electronic Retail Payment Systems—An Overview
    10. SECTION IV PLASTIC MONEY AND E-MONEY
    11. Credit Cards
    12. Debit Cards
    13. Credit and Debit Cards in India
    14. Other Payment Channels/Products
    15. SECTION V SECURITY ISSUES IN E-BANKING
  26. 17 Understanding Financial Services
    1. SECTION I NON-BANKING FINANCIAL COMPANY
    2. SECTION II VENTURE CAPITAL AND PRIVATE EQUITY
    3. Stages in Venture Capital (VC) Investing
    4. SECTION III CREDIT CARDS
    5. Major Parties Involved in Credit Card Transaction
    6. Working of Credit Cards
    7. Charges and Profits in Credit Card Transactions
    8. SECTION IV HOUSING FINANCE
    9. SECTION V IPO (INITIAL PUBLIC OFFERING)
    10. SECTION VI MICROFINANCE
    11. Challenges
    12. SECTION VII Pension Funds
    13. Pension Funds in India
    14. SECTION VIII Alternate investments
    15. Commodities
    16. Hedge Funds
    17. SECTION IX CONSUMER RIGHTS AND PROTECTION APPLICABLE TO FINANCIAL SERVICES
    18. Consumer Protection and Regulation in India
  27. 18 Insurance Services
    1. SECTION I BASIC CONCEPTS
    2. Basic Features of Insurance Contracts
    3. Benefits of Insurance
    4. Types of Insurance Products
    5. SECTION II INDIA'S INSURANCE SECTOR-AN OVERVIEW
    6. The Insurance Sector
    7. Changing Scenario of the Life Insurance Sector
    8. Insurance Regulatory Development Authority (IRDA)
    9. IRDA Regulations
    10. Life Insurance Corporation of India
    11. Export Credit Guarantee Corporation of India (ECGC)
    12. SECTION III BANKS AND INSURANCE SERVICES-BANCASSURANCE IN INDIA
    13. How Does Bancassurance Help Banks?
    14. How Does Bancassurance Help Insurance Companies?
    15. How Does Bancassurance Help Customers?
    16. SECTION IV GLOBAL INSURANCE INDUSTRY, OPPORTUNITIES AND CHALLENGES
    17. The Industry After the Financial Crisis
    18. Challenges
    19. Opportunities
    20. Convergence
    21. The Growth of Insurance Demand
  28. 19 Mutual Funds, Securities Trading, Universal Banking and Credit Rating
    1. SECTION I MUTUAL FUNDS
    2. Advantages of Mutual Funds
    3. Types of Mutual Funds
    4. Important Terms
    5. SECTION II TRADING IN SECURITIES/SHARES
    6. Factors Behind Growth of Online Trading
    7. Impact on Securities Market
    8. SECTION III UNIVERSAL BANKING
    9. Size and Market Power
    10. Diversification—Insurance and Securities
    11. Core of Universal Banking
    12. Impartial Investment Advice
    13. Benefits to Banks
    14. Benefits to Customers
    15. Challenges
    16. SECTION IV CREDIT RATING SERYICES
    17. Credit Rating—An Overview
    18. Information to Investors
    19. Benefits to Issuers
    20. Benefit to the Regulators
    21. Differences of Opinion in the Credit Rating Industry
  29. 20 Cash Management and Demand Forecasting in ATMs
    1. SECTION I INTRODUCTION
    2. SECTION II THE CASE OF BHARATH BANK
    3. Outsourced Agents for ATMs
    4. SECTION III THE CASE OF GLOBAL BANK
    5. Information Flow in the Supply Chain—Role of IT Infrastructure
    6. SECTION IV CASH DEMAND FORECASTING
    7. Time Series Analysis of Cash Withdrawals from ATMs
    8. Sales Trends and Other Factors
    9. Annexure I: ATM—Post- and Pre-Installation Activities
  30. 21 Mergers and Acquisitions in the Banking Sector
    1. SECTION I MERGERS AND ACQUISITIONS
    2. SECTION II CASE OF BANK OF MADURA MERGER WITH ICICI BANK
    3. Profiles of Banks
    4. Swap Ratio and Stock Price Fluctuations
    5. Suitability Analysis
    6. Synergies of the Merger
    7. Annexure I: Share Price Volume Data
    8. Annexure II: The Merger of Bank of Tokyo Mitsubishi and UFJ Bank
  31. 22 Innovations in Products and Services—Cases of Three Banks
    1. CASE STUDY I BARCLAYS BANK
    2. UK Banking
    3. Barclay Card
    4. Barclays Capital
    5. Barclays Global Investors
    6. Barclays Wealth Management
    7. Performance and Governance
    8. Products and Services
    9. Other Services
    10. Savings and Investment
    11. Recent Initiatives
    12. Barclays Strategy
    13. Case Questions
    14. CASE STUDY II ING VYSYA BANK
    15. Milestones of the Bank Over the Long Years of Its Services
    16. The Origin of ING Group
    17. The New Identity: ING Vysya Bank
    18. Customer Relationship Management
    19. IT Implementation for Quick Customer Response
    20. Retail Banking
    21. ING Vysya Bank’s Retail Banking Strategy
    22. Case Questions
    23. CASE STUDY III STATE BANK OF INDIA
    24. Features of the State Bank of India
    25. Primary Activities
    26. Secondary Activities
    27. Products and Services
    28. Case Questions
  32. 23 Innovations in Products and Services in Banking—Cases of Public and Private Sector Banks
    1. CASE STUDY I CORPORATION BANK
    2. Personal Banking
    3. Loan Schemes
    4. Cards
    5. High-Tech Banking Products and Services
    6. Products and Services for Non-Residents
    7. Important Services
    8. Case Questions
    9. CASE STUDY II SOUTH INDIAN BANK
    10. Introduction
    11. SIB Deposit Schemes
    12. Loans and Advances
    13. NRI Schemes
    14. Other Service Features Offered by SIB
    15. Case Questions
  33. Appendix: Objective-Type Questions on Commercial Banking
  34. Index
  35. Copyright