Fundamentals of Commercial Bank Management

Indirect or intermediary financing plays a vital role in today's contemporary financial systems. Even in directly financed markets, it is often not possible for market participants to trade individually and they need to get services from specialized financial intermediaries. Thus, the roles and activities of financial intermediaries have increased more than ever before. It is well known to those who are familiar with the subject that banks have always had a very important place among financial intermediaries. It is also well known that commercial banks or deposit banks play a dominant role among the types of banks such as investment banks, development banks or participation banks.
It is observed that commercial banks, which are the leading players of bank-based financial systems, are increasingly dominating market-based financial systems. Although investment banks have a significant weight in market-based systems, it is seen that commercial banks have increasingly penetrated into this area in the last two decades, with the effect of financial liberalization trends. The same trend is strongly felt in other areas of finance, particularly in the insurance sector, with practices such as bancassurance.
One of the most important reasons why commercial banks are in a superior position even in different types of financial systems is that they turn into supermarkets of financial products and services over time, suppressing other types of intermediation in the system by using their space and economies of scale advantages. Today, customers who demand financial products and services go to meet all their needs through commercial banks, as they save a lot of time and money. Indeed, with their widespread branch networks, internet branches, advanced technology-based applications such as mobile and telephone banking, commercial banks can serve their customers on a 24/7 basis, almost anywhere.
This book covers the basic principles and theories of the management of commercial banks, which have a central role in today's contemporary financial systems and have now become almost the dominant type of intermediation. Within the scope of financial management principles of banks; Topics such as the management of the bank firm and its branches, the fund raising and utilization strategies of banks, pricing and marketing strategies specific to banks are covered. Written at undergraduate and graduate levels, the book is a resource that can be easily used at the associate degree level, ignoring some technical issues. In addition, we believe that the book will be useful in providing a general vision to readers who are interested in banking or who are just starting out in this profession.