Includes bibliographical references and index.

Ch. 1. Trends in Domestic and International Banking.
1.1 Introduction.
1.2 Deregulation.
1.3 Financial Innovation.
1.4 Globalization.
1.5 Profitability.
1.6 The Future.
1.7 Conclusion.
1.8 Summary.
Questions.
Test Questions --
Ch. 2. Financial Intermediation: The Impact of the Capital Market.
2.1 Introduction.
2.2 The Role of the Capital Market.
2.3 Determination of the Market Rate of Interest.
2.4 Summary.
Questions.
Test Questions --
Ch. 3 Banks and Financial Intermediation.
3.1 Introduction.
3.2 Different Requirements of Borrowers and Lenders.
3.3 Transaction Costs.
3.4 Liquidity Insurance.
3.5 Asymmetry of Information.
3.6 Operation of the Payments Mechanism.
3.7 Direct Borrowing from the Capital Market.
3.8 Conclusion.
3.9 Summary.
Questions.
Test Questions --
Ch. 4. Banking Typology.
4.1 Introduction.
4.2 General Features of Banking.
4.3 Retail Banking.
4.4 Wholesale Banking.
4.5 Universal Banking.
4.6 Islamic Banking.
4.7 Microfinance.
4.8 Shadow Banking.
Summary. Questions.
Test Questions --
Ch. 5. International Banking.
5.1 Introduction.
5.2 The Nature of International Banking.
5.3 Growth of International Banking.
5.4 The Eurocurrency Markets.
5.5. Summary.
Questions.
Test Questions --
Ch. 6. The Theory of the Banking Firm.
6.1 Introduction.
6.2 The Textbook Model.
6.3 The Perfectly Competitive Bank.
6.4 The Monopoly Bank.
6.5 The Imperfect Competition Model.
6.6 Summary. Questions. Test Questions --
Ch. 7. Models of Banking Behaviour.
7.1 Introduction.
7.2 The Economics of Asset and Liability Management.
7.3 Liquidity Management.
7.4 Loan Pricing.
7.5 Asset Management.
7.6 The Real Resource Model of Asset and Liability Management.
7.7 Liability Management and Interest Rate Determination.
7.8 Summary. Questions. Test Questions --
Ch. 8. Credit Rationing.
8.1 Introduction.
8.2 The Availability Doctrine.
8.3 Theories of Credit Rationing.
8.4 Asymmetric Information and Adverse Selection.
8.5 Adverse Incentive.
8.6 Screening versus Rationing.
8.7 Empirical Evidence.
8.8 The Existence of Credit Rationing.
8.9 Summary.
Questions.
Test Questions --
Ch. 9. Securitization.
9.1 Introduction.
9.2 Sales of Securities through Financial Markets.
9.3 Asset-Backed Securitization (ABS).
9.4 The Process of Asset-Backed Securitization.
9.5 The Gains from Asset-Backed Securitization.
9.6 Conclusions.
9.7 Summary. Questions.
Test Questions --
Ch. 10. Banking Efficiency and the Structure of Banking.
10.1 Introduction.
10.2 Measurement of Output.
10.3 Performance Measures.
10.4 Reasons for the Growth of Mergers and Acquisitions.
10.5 Motives for Mergers.
10.6 Empirical Evidence.
10.7 Summary.
Questions.
Test Questions --
Ch. 11 Banking Competition.
11.1 Introduction.
11.2 Concentration in Banking Markets.
11.3 Structure–Conduct–Performance.
11.4 Competition Analysis.
11.5 Competition in the UK Banking Market.
11.6 Summary.
Questions.
Test Questions --
Ch. 12 Bank Regulation.
12.1 Introduction.
12.2 The Case for Regulation.
12.3 The Case against Regulation.
12.4 Regulation.
12.5 Summary.
Questions.
Test Questions --
Ch. 13. Banks and Money Laundering.
13.1 Introduction.
13.2 Scale, Scope and Typology.
13.3 Microeconomics of Money Laundering.
13.4 Macroeconomics of Money Laundering.
13.5 Combating Money Laundering.
13.6 Summary. Questions. Test Questions --
Ch. 14 Risk Management.
14.1 Introduction.
14.2 Risk Typology.
14.3 Interest Rate Risk Management.
14.4 Market Risk.
14.5 Credit Risk.
14.6 Operational Risk.
14.7 Risk Management and the Global Banking Crisis.
14.8 Conclusion.
14.9 Summary.
Questions.
Test Questions --
Ch. 15. The Macroeconomics of Banking.
15.1 Introduction.
15.2 The Economics of Central Banking.
15.3 Financial Innovation and Monetary Policy.
15.4 Bank Credit and the Transmission Mechanism.
15.5 Summary.
Questions.
Test Questions.

Economics of Banking is aimed at final year undergraduate, postgraduate and MBA students taking courses in banking. The text focuses on banking trends and operations in a microeconomic context, incorporating theoretical material with practical aspects of banking.