Bank Valuation & Value-Based Management

The definitive guide to complying with the brand-newBasel III requirements and creating sustainable value

With the Final Standard of Basel III published and implementation deadlines set, there's no better time for the revised and updated edition of the cornerstone resource bankers, bank regulators, auditors, and risk managers worldwide rely on-- Bank Valuation and Value-Based Management . Whether you're complying with the new standards of practice, valuing a bank, or searching forsustainable value creation, you can do it quicker and more effectively with the insight only Jean Dermine can offer.

Renowned for his expertise in asset and liabilitymanagement, European financial markets, and banking theory, Dermine provides the most comprehensivereference available on the essence of banking--asset-liability management, with particular focus on an institution's banking book. Along with an in-depth exploration of what drives value in a bank, he equips you with his personal bank valuation model aimed at assessing decisions that enhance shareholder value. Complementing his toolbox of practical instruments for valuing banks, Dermine gives you a robust, integrated value-based management framework for addressing such managerialissues as fund transfer pricing, risk-adjusted performanceevaluation, deposit pricing, capital management, loan pricing and provisioning, securitization, and the measurement of interest-rate risk.

Relevant in banking systems across the globe, this new edition includes the latest methods and strategies for:

Identifying the drivers of sustainable value creation
Choosing a fund transfer price that includes liquidity and solvency risks
Allocating economic capital to business unitsPricing deposits and loans
Estimating the duration of nonmaturing accounts
Allocating provisions on performing and nonperforming loans.

Throughout the book, extensive mathematical formulas and exercises ground conceptual coverage to hands-on practices. A wealth of