Managing Financial Institutions
Markets and Sustainable Finance

This book goes beyond traditional financial institutions textbooks, which tend to focus on mathematical models for risk management and the technical aspects of measuring and managing risk. It focuses on the role of financial institutions in promoting social and economic goals for the communities in which they operate for the greater good, while also meeting financial and competitive challenges, and managing risks.

Cooperman divides the text into seven easily teachable modules that examine the real issues and challenges that managers of financial institutions face. These include the transformative changes presented by social unrest, climate change and resource challenges, as well as the changes in how financial institutions operate in light of the opportunities that rapid innovations and disruptive technologies offer. The book features:

• Up-to-date coverage of new regulations affecting financial institutions, such as Dodd Frank and new SEC regulations.
• Material on project financing and new forms of financing, including crowd funding and new methods of payment for financial institutions.
• New sustainable finance models and strategies that incorporate environmental, social, and corporate governance considerations.
• A new chapter on sustainable financial institutions, social activism, the greening of finance, and socially responsible investing.

Practical cases focusing on sustainability give readers insight into the socioeconomic risks associated with climate change. Streamlined and accessible, Managing Financial Institutions will appeal to students of financial institutions and markets, risk management, and banking. A companion website, featuring PowerPoint slides, an Instructor?s Manual, and additional cases, is also available.

Preface

Introduction

Part 1: Overview Financial Services Industry & Its Environment

Module I: The Financial Services Industry: Today and the Future

Chapter 1: Financial Institutions as Social Value Creators & Financial Risk Takers

Module II: Financial Markets, Interest Rates, & Their Regulatory Environment

Chapter 2: Interest Rates: Theories & Duration as an Overall Risk Measure

Chapter 3: The New Regulatory Environment & the Regulatory Dialectic

Part 2: Performance & Risk Analysis for FIs & ESG Considerations

Module III: Risk & Financial Analysis of Financial Institutions

Chapter 4: Financial Performance & Risk Analysis

Chapter 5: Capital Management

Module IV: Environmental, Social, & Governance (ESG) for FIs

Chapter 6: Social and Environmental Risks and Sustainable Financial Institutions

Part 3: Managing FI Risks

Module V: Managing Interest Rate & Foreign Exchange Risks

Chapter 7: International Markets, Foreign FX Risks, & Hedging FX Risk

Chapter 8: Hedging Interest Rate Risk with Derivatives

Part 4: Asset & Liability Management

Module VI: Asset & Liability Management and Innovations

Chapter 9: Loan Analysis, Credit Risk Management & Loan Securitization

Chapter 10: Liquidity & Liability Management

Part 5: Overview Non-Depository FIs & New Forms of Financing

Module VII: Contractual Financial Institutions & Mutual Funds

Chapter 11: Insurance Companies: Overview, Operations, and Performance Analysis

Chapter 12: Mutual Fund and Pension Management

Module VIII: Securities Firms & Venture Capital & Crowd Funding

Chapter 13: Investment Banks & Securities Firms & Dark Pools & High Frequency Trading

Chapter 14: Shadow Banking, Finance Companies & Diversified Financial Firms, Venture Capital, Crowd Funding, & Microfinance

Appendix A: Overview Liquidity Analysis

Appendix B: Mini-Loan Analysis Cases

Appendix C: Mini Financial Institution Analysis Cases

Appendix D: Text Chapter Mapping: HBS Business School Publishing Cases

Glossary

Elizabeth S. Cooperman is a Professor of Finance and Entrepreneurship and Co-Director of the Managing for Sustainability program at the University of Colorado Denver, USA. She serves as co-editor for the International Review of Accounting, Banking and Finance, and is past president of the Midwest Finance Association.