Classic banking theory holds that banks transform illiquid assets (loans) into liquid liabilities (deposits). Edition-2 argues that this model is broken.
This is the textbook that replaces Rose & Hudgins' Bank Management . It is rigorous but includes Excel workbooks and Python scripts for IRRBB (Interest Rate Risk in the Banking Book) calculation. The Principles of Banking Edition- 2
The original edition focused heavily on the Basel III framework and post-2008 liquidity coverage ratios (LCR). However, the collapse of Silicon Valley Bank (SVB) and Credit Suisse revealed that . Classic banking theory holds that banks transform illiquid