The Principles of Banking, 2nd Edition

Foreword

Helen Sachdev

The Principles of Banking was first published in the aftermath of the 2007–2008 banking crisis. The timing of this second edition coincides with the UK taking its first cautious steps in recovering from the global pandemic of Covid-19 in 2020–2021. What is notable is that since the first edition, and despite the largest shock to GDP since the World Wars in the early 20th century,¹ there have been no UK systemic banking failures.²

Clearly the regulators introducing layers of regulation designed to prevent a repeat of such an occurrence have had a big part to play. But as I got ready to read this book, much as I might reach out for the instruction manual after failing to fix something I rely on, I was intrigued to see whether the author might shed light on what is really different about the current banking system today versus the one back in 2008; what are the root causes of the current crisis not resulting in further systemic banking failures?

As Chair of the Loughborough Building Society, I am proud to work alongside Professor Moorad Choudhry as one of my Non-Executive Directors. His depth of knowledge on balance sheet risk management, Treasury asset–liability management (ALM), liquidity risk management, capital management, and risk governance oversight is invaluable. As well as being a senior practitioner, and having served as Treasurer of various EMEA banks, he is a well-respected academic, and is regularly called upon to lecture and teach on his areas ...