General Manager, Bank for International Settlements
This is a timely and comprehensive study of risks facing the global banking industry. The book draws on the expertise of top banking experts: commercial bankers, central bankers, regulators and risk experts from China, Japan, the U.S. and other parts of the world to give the reader a comprehensive view of challenges facing the international banking industry. The contributors clearly set out the challenges facing regulators and market participants in this uncertain environment. One of the most valuable characteristics of this book is the sheer scope of the contributors’ vision. They consider every aspect of the global banking system, its risks and possible solutions for ensuring a more stable environment.
Executive Chairman, Templeton Asset Management
Among the plethora of offerings in the wake of the global financial crisis, Banks at Risk is a must-read. This collection of contributions provides a thoughtful tour of the lessons from the crisis with perspectives from regulators, practitioners, and risk managers. While the perspectives are varied, the consistency of several themes is compelling: supervision matters more than regulation; risk is more a characteristic of concentration and excessive risk taking than of size; undercapitalization contributed less to the crisis than did poor management; and the importance of returning to basics in areas such as credit culture and understanding of risks. While these themes are at odds with the direction of current international regulatory reforms, they are not easily dismissed. They are presented by an outstanding group of individuals who are associated with institutions and countries that not only survived the crisis, but are widely regarded as among the most successful survivors. Their views are worth heeding.
Chief Executive Officer, Promontory Financial Group Australasia
Former Chairman, Australian Prudential Regulation Authority
Banks at Risk is a seminal book for clearly understanding the global financial crisis created by the banks and other financial institutions, for describing the lessons we should have learned; and highlighting the levers to transform the system. It is excellent in extracting the insights from the best in our industry. Most impressive are the introductions by Peter Hoflich to the contributed chapters; from the sharp, concise, and accurate overall analysis of the crisis to the detailed, comprehensive, and referenced settings of his various aspects of our business and industry.
Chairman, OneEmpower and LINK Financial
Former board member of Standard Chartered Bank and Group, Ford Financial, DBS Bank and Bank for the Philippine Islands
Part One: The Regulators.
1. Effective Supervision of Systemically Important Banks (Liu Mingkang).
2. Implications of the Financial Crisis for Risk Management and Macroprudential Supervision (Eric S. Rosengren and Joel Werkema).
3. Entering an Era of Global Regulatory Oversight (Jane Diplock).
4. Old and New Lessons of the Financial Crisis for Risk Management (José María Roldán and Jesús Saurina).
Part Two: The Practitioners.
5. Observations from the Epicenter (Richard Kovacevich).
6. The Financial Crisis: Epicenters and Antipodes (Mike Smith).
7. The Trouble With Troubled Banks (Shan Weijian).
Part Three: The Risk Managers.
8. Global Risk Management in Action (Rob Close).
9. The Credit Crisis and Its Implications for Asian Financial Institutions (Tham Ming Soong).
10. Missing Viewpoints of Current Global Regulatory Discussions (Tsuyoshi Oyama).