Noting that banks operate in the financial services industry, rather than the more narrowly defined banking industry, this textbook is aimed at business students who wish to join the industry and maximize shareholder value. Because of the declining franchise value of the traditional business of funding loans with deposits, the text emphasizes other ways to maximize profits, including the development of tools for the management of risk, including off balance sheet techniques. After a section that overviews the broad contours of the financial service industry, chapters address bank financial statements, risk, and valuation; strategic planning, risk management, asset-liability management, and capital adequacy; credit risk; the liquidity, operating, and foreign-exchange risk of banking and securitization; and the roles of regulation, deposit insurance, and ethics. Annotation c. Book News, Inc., Portland, OR (booknews.com)
Joseph F. Sinkey, Jr. is Professor of Banking and Finance and holds the Edward W. Hiles Chair of Financial Institutions, Department of Banking and Finance, Terry College of Business, The University of Georgia, Athens, Georgia. He received his Ph.D. in economics from Boston College in 1971 and his B.A. in economics from St. Vincent College, Latrobe, Pennsylvania, in 1966. From 1971 to 1976, he was a financial economist with the Division of Research of the Federal Deposit Insurance Corporation, Washington, D.C. He joined the faculty of the University of Georgia in 1976 as an Associate Professor and there as Full Professor in 1983. From 1985 to 1992, he held the Georgia Bankers Association Chair of Banking.
Professor Sinkey has distinguished himself as a teacher, author, and researcher. He was recognized for superior teaching at The University of Georgia Honors Day in 1984 and 1985 and by the Georgia Finance Club in 1984. He is the author of several books: Commercial Bank Financial Management, published in 1983, 1986, 1989, 1992, 1998; Application of Classification Techniques in Business, Banking, and Finance, a coauthored research book published by JAI Press, Inc. in 1981; and Problem and Failed Institutions in the Commercial Banking Industry, a research book published by JAI Press, Inc. in 1979. Professor Sinkey has written numerous articles, chapters, book reviews, and op-ed pieces for various banking and finance publications and newspapers. He is an associate editor and the book review editor for the Journal of Banking and Finance, a former associate editor for the Journal of Financial Research, and an ad hoc reviewer for major banking, finance, and economics journals.
In addition to his teaching and research duties, Professor Sinkey has served as a consultant to industry and government, testified before the U.S. Senate, and been an expert witness in cases involving banking and financial matters. He has taught at various banking schools across the country including the School for Bank Administration, The Michigan Graduate School of Bank Management, The Management School of Bank Marketing, The School for Executive Development, and the Georgia Banking School. His international experience includes teaching, seminars, paper presentations, and speeches in Barcelona, Bratislava (Slovakia), Byblos (Lebanon), Istanbul, Jerusalem, London, Lyon, Melbourne, Montevideo, Oslo, Phnom Penh, Rome, Seoul, Taipei, Tours, and Vilnius (Lithuania).
