The Bank Credit Analysis
Handbook: A Guide for Analysts, Bankers and Investors
Jonathan Golin, Thomas
Bankwatch Asia, Hong Kong
A hands-on guide to the
theory and practice of bank credit analysis and ratings
A bank's creditworthiness is
important to a large number of individuals from ordinary depositors to equity and fixed
income investors, as well as other banks. In this timely book, Jonathan Golin explains the
role of bank credit analysts and the methodology of their practice. He elaborates on the
application of the industry standard CAMEL model to bank credit analysis with the help of
charts, graphs, and spreadsheet illustrations. International case studies are also
presented to help readers gain a global perspective on the world of bank credit analysis.
Jonathan Golin was the editor
and contributing author of Capital Flows Along the Mekong: A Guide to Investment in
Vietnam, Cambodia, Laos, and Myanmar (1995) and has written numerous articles for the
Asian Wall Street Journal and Vietnam Business Journal. He is a contributing author to the
1999 Chase Guide to Corporate Treasury.
Table of contents
Acknowledgments.
Preface.
Introduction.
The Role of the Bank Credit
Analyst: Assessing the Creditworthiness of Banks.
An Overview and Introduction
to Bank Credit Analysis: Source Materials and Disclosure.
Deconstructing a Bank's
Financial Statements, Part One: Understanding the Income Statement.
Deconstructing a Bank's
Financial Statements, Part Two: The Balance Sheet.
Introduction to Bank Credit
Analysis: The CAMEL Model.
Earnings & Profitability:
Evaluating Overall Performance.
Earnings & Profitability: Evaluating the Interest Income and Non-Interest Income
Components of Revenue.
An Introduction to Asset
Quality: Non-Performing Loans and the Credit Cycle.
Qualitative Review of Asset
Quality.
Quantitative Review of Asset
Quality.
Capital: Cushion Against
Loss.
Capital Adequacy: The Basel
Accord and Proposed Changes.
Funding and Liquidity, Part
I: Liquidity and Asset-Liability Management.
Funding and Liquidity, Part
II: Funding the Bank and Ratio Analysis.
Management and the Bank
Visit.
The Risk Management Context:
The Practical Application of Credit Assessments.
The Banking Environment:
Sovereign Risk, Systemic Concerns and Approaches to Government Regulation.
The Regulatory Regime: The
Contours of Prudential Regulation of Banks.
The Distressed Bank, Part I:
Introduction to Restructuring
The Distressed Bank, Part II:
Aims and Methods of Restructuring.
The Distressed Bank, Part
III: Recapitalization.
The Distressed Bank, Part IV:
Illustrative Approaches to Restructuring-Malaysia and South Korea.
The Distressed Bank, Part V:
Illustrative Approaches to Restructuring-Indonesia and Thailand.
Rating the Bank, Part I: The
Ratings Industry and its Rationale.
Bank Rating Types and
Symbologies: A User's Guide.
Fixed Income Analysis Applied
to Financial Institutions.
E-Banking: The Internet and
the Future of the Bank.
Appendix A: Sources and
Further Reading.
Appendix B: Bank Analysis
Toolbox Ratio Compendium.
Appendix C: The New Basel
Capital Accord: The January 2001 Proposal Due for Implementation by 2004.
Appendix D: Glossary.
Index.
740 pages