Why is the South African banking industry regarded as one of the best in the world? How is it structured? How did it avoid collapse during the global financial crisis of 2007-2009? Bank management in South Africa: A risk-based perspective is the first textbook for the South African market to answer these questions. It provides a comprehensive overview of the way banks and their financial risks are managed.

Key Benefits

• Practical examples with South Africa as a focus to complement the theoretical discussions;
• An extensive structure/conduct/performance analysis of the South African banking industry;
• The principles of Enterprise-Wide Risk Management applicable to banks;
• The Three Lines of Defence Model used by banks to apply risk governance;
• A study of the asset-liability management function used to manage interest rate risk;
• Examples to calculate value-at-risk, using the RiskMetrics, historic and Monte Carlo approaches;
• An explanation of risk management using derivatives instruments, such as futures, options and interest rate swaps;
• A South African application of the Basel capital accords.

Chapter 1: Financial Intermediation Theory
Chapter 2: The Competitive and Operating Environment of the South African Banking Industry
Chapter 3: Financial Regulation in the South African Banking Industry
Chapter 4: Relations hip Banking in South Africa
Chapter 5: The Development and Internationa lisation of South African Banking
Chapter 6: Integrated Reporting for Banks
Chapter 7: Financial Reporting for Banks
Chapter 8: Measuring the Performance of a Bank
Chapter 9: Establishing a Risk Philosophy in Banks Banking
Chapter 11: The Management of Interest Rate Risk: Asset– Liability Management
Chapter 12: Managing Risk in Banking
Chapter 13: Managing the Assets of a Bank
Chapter 14: Managing the Liabilities of a Bank
Chapter 15: Banks and Capita l Adequacy

This book is an essential resource for senior undergraduate and Honours students of Financial Economics, as well as South African bankers and practitioners interested in how to manage financial risks. Additional support material such as PowerPoint slides and multiple choice questions are available for every chapter.