Book Review - Treasury Management in Medium-Sized Banks

Eric Frère
2011 Financial Assets and Investing  
German Title: Treasury Management in mittelständischen Kreditinstituten FC Heidelberg. approx. 2,000 p., 2 volumes, ISBN 978-3-940976-00-0. As a consequence of the financial crisis, treasury management in banks becomes more and more important. The presented work of Prof. Dr. Stefan Zeranski offers a very detailed solution how treasury management should be handled in banks. The books are structured as follows. Chapter A offers regulatory requirements for the treasury management. MaRisk, Basel
more » ... t. MaRisk, Basel III and the main aspects for the supervisory process are presented. The topic is up-to-date as the newest publications of the Basel Committee are implemented. Chapter B deals with the basics and required theoretical aspects of treasury management. After the definition of status quo, methodical aspects, risk limitation and structural basics are described. Chapter C describes the management process of treasury management. All important types of risks are presented: liquidity risk, interest rate risk, share price risk, real estate risk, currency risk, risk resulting from options, credit risk and inflation risk. The requirements of the new product process complete this chapter. Chapter D specializes onto the core satellite approach in banks. Concrete products to invest into a risk category are presented, e.g. specialized funds or public funds of global players in the market. This chapter offers practical solutions for banks and discusses the pro and cons of the products. Chapter E focuses on the support of the central associations how to manage risk. The concepts of the savings bank sector, the cooperative bank sector and some other specialized portfolio managers are presented. Chapter F is the first chapter of vol. 2. It focuses on the information and transaction systems. Research tools and software tools (e.g. SAP) to realize treasury management are presented.
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