Banking is an essential industry, and one with many regulations as well as frequent, important changes. Like previous editions, the Fifth Edition is designed to help students understand the field of banking from the perspective of both a bank customer as well as a bank manager. The author provides a well-written description of the banking industry while keeping the text as current as possible.
This book, presented from my perspective, emphasizes stable profitability and risk control, teaching readers how to choose healthy banks and avoid high risk institutions. It offers practical tools, responsible asset management strategies, operational optimization, and adaptation to regulatory changes. However, it also advocates for the adoption of newer technologies. The book later discusses future trends and the impact of fintech on bank operations. Many banks are now encouraging the adoption of blockchain and other projects. The book mentions the 2008 financial crisis, specifically Lehman Brothers, the fourth-largest investment bank in the US, which suddenly went bankrupt on September 15, 2008, becoming the "trigger" for the crisis, leading to a global stock market crash, credit freezes, and economic recession. Lehman Brothers held a large amount of toxic assets related to subprime mortgages but refused to sell at a discount or seek assistance. Governments were unwilling to intervene as they had with Bear Stearns, triggering market panic and a chain reaction. These events were unavoidable.
The explanations are easy to understand, but some of them may not be as relatable in the context of Bangladesh or other Asian countries. However, it is a helpful resource for practicing bank financial statements, interest sensitive assets, liabilities analysis; duration analysis issues. Overall, it provides valuable insights for international understanding. ✍️✨