Banks at Risk: Global Best Practices in an Age of Turbulence
Author(s): Peter Hoflich (Author)
Publisher: John Wiley & Sons
Publication Date: 24 Jun. 2011
Language: English
Print length: 248 pages
ISBN-10: 9780470827192
ISBN-13: 9780470827192
Book Description
Ideas on how to reform the financial services industry, from experts on the inside In the wake of the financial crisis of 2008 the practices of the entire global financial services industry have been called into question. From the government, to the media, to the general public, everyone is re-thinking the way forward for the financial sector, but the stakes are high. Should negative trends in the industry continue and financial innovations allow fallout from the next crisis to grow exponentially, the endgame could be the sort of mutually assured destruction that topples entire economies. Charting the way forward for financial services reform requires a fundamental reappraisal of how things are done in order to avert disaster in the near future, and Banks at Risk: Global Best Practices in an Age of Turbulence explores what the future holds, by talking to experts in the know. Compiling the insights of ten key figures in the financial services industry regulators, commercial bankers, risk managers, and infrastructure specialists who look at both strategic and operational issues in their assessments of how to clean up the industry and move towards a system of properly-managed risk, the book explores exactly what we need to do to prevent another crisis. Sharing their thoughts for the first time are Liu Mingkang, the Chairman of the China Banking Regulatory Commission; Eric Rosengren, President of the Federal Reserve Bank of Boston; Joel Werkama, Assistant Vice President of the Federal Reserve Bank of Boston; Jane Diplock, former chairperson of the International Organization of Securities Commissions and the former head of New Zealand s securities commission; Jose Maria Roldan, head of the banking supervision at the Bank of Spain; Jesus Saurina, Director of the Financial Stability Department at the Bank of Spain; Dick Kovacevich, former chairman and CEO of Wells Fargo Bank; Mike Smith, CEO of ANZ Group and former head of HSBC s Asia Pacific operations; Shan Weijian, Chairman and CEO of Pacific Alliance Group and former senior partner of TPG Capital; Rob Close, former CEO of CLS Group; Tham Ming Soong, Chief Risk Officer at the United Overseas Bank in Singapore; and Tsuyoshi Oyama, former head of the risk assessment division in the international affairs division of the Bank of Japan. * Takes a unique look at the problems with the financial services industry and what can be done to fix them * Brings together ideas for reform from numerous internationally respected figures working in the industry, many of them writing about their solutions for the first time * Offers a remarkable insight into how to build a more sustainable future Eminently thought provoking, Banks at Risk presents real solutions to reforming the financial services industry, from the men and women who know it best.
Editorial Reviews
Review
‘Another dose of best-practise medicine .aims some much-needed critical scrutiny at the friction between risk management and business requirements. (Accounting Technician, March 2011).
From the Inside Flap
In the wake of the great financial crisis of 2008 the entire industry’s practices have come under scrutiny. Everyone from the government to regulators, banks and risk managers are rethinking the best way forward for the financial sector.
The stakes are high. Should trends in the industry continue and financial innovations allow the damage of the next crisis to grow exponentially, the endgame could be the sort of mutually assured destruction that topples entire economies. Charting the way forward in financial industry reform requires a fundamental reappraisal of how things are done in order to avert disaster in the near future.
Banks at Risk compiles the insights of 10 key figures in the financial services industries—regulators, commercial bankers, risk managers and infrastructure specialists—who look at both strategic and operational issues in their assessment of cleansing the rot from the financial services industry in order to move to a better system of properly-managed risk. These influential individuals possess a valuable storehouse of global knowledge, and their insights into what the financial services industry needs to do to avoid the mistakes of the past are key to building a sustainable future.
Falling back on previous established practices is not an option. Given the insights of leading practitioners who know how to fix problems, there’s still a chance that the next crisis will not again be one caused by the neglect of an industry of experts who looked the other way.
From the Back Cover
The crisis revealed a pressing need for better bank governance and risk management along with enhanced supervision and regulation. The Basel III framework—which substantially strengthens bank capital adequacy and introduces liquidity requirements as well as specific supervisory tools to address systemic risk—was a rapid and decisive response, yet much work remains to be done. Beyond the full, timely and consistent global implementation of Basel III, important issues that need to be addressed include systemically important financial institutions, effective cross-border resolution regimes and shadow banking. Banks at Risk provides unique insights into what went wrong and why. More importantly, it contributes to the ongoing debate on how to mitigate the severity and likelihood of future crises.
Jaime Caruana 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.
Mark Mobius 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.
Jeff Carmichael 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.
Philippe Paillart Chairman, OneEmpower and LINK Financial Former board member of Standard Chartered Bank and Group, Ford Financial, DBS Bank and Bank for the Philippine Islands
About the Author
Peter Hoflich is the managing editor of The Asian Banker. He joined the company in 2003 as a writer and analyst and has contributed to all of the company s main research and editorial products. He has moderated at industry gatherings and offered commentary on the latest developments in the financial services industry on BBC and CNBC. His first book, Asia s Banking CEOs was published by John Wiley & Sons in 2008.
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