Bank Management, 6th Edition

Timothy W. Koch, Steven Scott Macdonald

The concept of risk management serves as the unifying theme. A bank’s asset and liability management committee (ALCO) or risk management committee is responsible for the overall financial planning and management of the bank’s profitability and risk profile. The book emphasizes how managers can develop and implement strategies to maximize stockholders’ wealth by balancing the trade-off between banking risks and returns.